Divi’s Labs beats street estimates with 78% jump in Q4 profit
Last Updated: 23rd May 2022 - 01:34 pm
Divi’s Laboratories, the second most valued drugmaker in India, came out with strong numbers for the quarter ended March 31, 2022 over the year-ago period despite playing on a high base.
The pharma company posted a 78% rise in consolidated net profit to Rs 895 crore compared with Rs 502 crore in the three months ended March 31, 2021. Analysts were projecting the company to post net profit in the region of Rs 700 crore.
While the cost of raw materials rose around 28% over the year-ago period and the nearly debt-free company did see employee expense rise 19% during the quarter, it more than made it up with a strong bounce in turnover.
The company’s consolidated revenue shot up ahead of what the analysts were expecting. Revenue grew 41% to Rs 2,518.4 crore from Rs 1,788.2 crore in the same period the previous year.
Brokerage houses were expecting the company to post revenue of around Rs 2,200 crore during the quarter.
The company’s share price rose 1.7% and was quoting around Rs 4,380 apiece in mid-day trades in a strong Mumbai market on Monday.
Other Key Highlights
1) Revenue for the full year ended March 31, 2022 rose 28.5% to Rs 8,960 crore.
2) Net profit for FY22 came at Rs 2,960 crore, up 49% over the previous year.
3) The board of directors of the company recommended a dividend of Rs 30 per share, or 1,500% for the financial year 2021-22.
4) During the year 2021-22, the company has capitalized assets of Rs 934.56 crore with capital work in progress as at the year-end amounting to Rs 469.93 crore.
5) During the financial year 2020-21, it had capitalised assets of Rs 1,183.51 crore and Rs 710.62 crore was carried forward as capital work-in-progress.
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