Divi’s Labs Q4 Results: Profit Jumps 78%, Declares Dividend Of Rs 30/Share

Divi’s Laboratories Ltd.’s fourth-quarter profit surged, beating forecasts.

The net profit of India’s second-largest drugmaker by market value jumped 78% year-on-year to Rs 895 crore in the three months through March, according to its exchange filing. That compares with the Rs 685-crore consensus estimate of analysts tracked by Bloomberg.

Divi’s Laboratories Q4 Highlights (YoY)

• Revenue rose 41% to Rs 2,518 crore, against the estimated Rs 2,245 crore.

• Operating profit rose 52% to Rs 1,104 crore, compared with the Rs 934-crore forecast.

• Operating margin stood at 43.9% against 40.7% a year ago and 41.6% estimate.

• Recommended a dividend of Rs 30 apiece of face value Rs 2 each.

FY22 Highlights (YoY)

• Revenue rose 29% to Rs 8,960 crore.

• After-tax profit rose 49% to Rs 2,960 crore.

• Operating profit increased 36%.

• Operating margin stood at 43.3% against 41% a year ago.

• EPS stood at Rs 111.52 apiece compared with Rs 74.75 in FY21.

The company crossed $1 billion in revenue in FY22. Its overall exports for the year stood at around 90%, of which 77% was to the U.S. and Europe.

The company has planned a capex outlay of Rs 2,000-3,000 crore over the next two to three years and “if opportunity exists, it would hike up the budget to Rs 4,000-5,000 crore since its reserves permit”, it said in a post-earnings call.

The drugmaker is still awaiting government approval on its Kakinada plant. The management, however, seems confident that a delay in approval would not affect growth prospects.

Divi’s Labs had a plant capacity utilisation of 80-85% for the year, excluding new capacities. Two new SEZ units became operational in FY22, leading the company to enjoy a lower tax rate of 19.6% for the year, it said.

Shares of Divi’s Labs were trading 9.89% lower after the earnings call compared with a 0.03% decline in the benchmark Sensex as of 3:24 p.m.