Divi’s Labs shares tank 13%, hit 52-week low as Q3 net profit falls 66%
Shares of Divi’s Laboratories Ltd tanked more than 13% to hit a 52-week low level of ₹2,796 apiece on the BSE in Friday’s session after the pharma company reported its third quarter net profit below analysts’ estimates. The Hyderabad-based company’s consolidated net profit came at ₹307 crore, which was down about 66% as compared to ₹902 crore the same quarter last year.
Meanwhile, the drugmaker’s consolidated revenue from operations for the company during the quarter under review declined over 31% from last year to ₹1,708 crore as against ₹2,493 crore, while inventory costs in the third quarter were at ₹123 crore. The company said that Material consumption for this quarter came to be about 43% of sales revenue due to change in product mix.
Divi’s Labs makes active pharmaceutical ingredients which are key biologically active elements in a drug that help with the desired health effects. The company also makes chemical substances used to make drugs. The pharma stock has declined more than 32% in a year’s period.
For the 9-month period ended 31st December, 2022, the company said it earned a profit after tax (PAT) of ₹1,502 crore on a total income of ₹6,099 crore, as against a PAT of ₹2,066 crore on a total income of ₹6,503 crore during the corresponding previous period.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.