Brokerages downgrade Divi's Labs post Q2 letdown; stock falls 11% in 2 days

EBITDA margins declined 767 bps YoY to 33.5 per cent due to high energy and transport costs.

Shares of Divi’s Laboratories hit a 52-week low of Rs 3,344.60, down 2 per cent on the BSE in Wednesday’s intra-day trade. In past two days, the stock of pharmaceuticals company has cracked 11 per cent after it reported a disappointing set of numbers with consolidated profit after tax (PAT) down 18 per cent year-on-year (YoY) and 30 per cent quarter-on-quarter (QoQ) at Rs 493.60 crore for the September quarter.

Divi’s Lab’s revenue from operations during the quarter under review de-grew 6.7 per cent YoY and 17.8 per cent QoQ at Rs 1,854 crore. Analysts expected profit of around