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Divis Lab Q4 Results FY22

23 May 2022

One of India’s leading pharmaceutical companies, Divis Laboratories Ltd, announced its Q4FY22 result on May 23, 2022. 

Divis Laboratories posted a total income of Rs. 2,570.8 crores, up an impressive 41.8% Y-o-Y (year-on-year) from Rs. 1,811.7 crores in the year ago period. Revenue from operations came in at Rs. 2,518.4 crores, rising 41% against Rs. 1,788.19 crores in the corresponding quarter in the previous year. 

Profit after tax (PAT)  was recorded at Rs. 894.64 crores, up a mammoth 78% Y-o-Y from Rs. 502.02 crores, beating all market estimates. 

The company forex gains increased to Rs. 29 crores from Rs. 3 crores yearly, rising a stellar 886%. For the year 21-22, Divis Labs had capitalized assets valuing Rs. 934.56 crores. Capital WIP for the year-end amounted to Rs. 469.93 crores. 

For the FY21-22,  the Company’s Board of Directors have recommended a dividend of Rs. 30 per share of face value Rs. 2 each (1500%), subject to members’ approval at the ensuing Annual General Meeting. 

The scrip appreciated nearly 0.71% in the first half of the trading session, trading at Rs. 4,340.15 per share. 

Highlights

  • PAT for the company rose 78% yearly, to Rs. 894.6 crores
  • Divis labs recorded revenue from operation at Rs. 2,518 crores, rising 41% Y-o-Y basis from Rs. 1,788.19 crores
  • Total revenue was published at Rs. 2,570 crores, up 41.8% from Rs. 1,811 crores on a yearly basis
  • The company’s capital WIP was recorded at Rs. 469.93 crores
  • Forex gains increased at a stellar 866% to Rs. 29 crores from Rs. 3 crores Y-o-Y
  • Divis lab declared an interim dividend of Rs. 30 per equity, as high as 1500% above its face-value of Rs. 2 per equity share
  • Earnings Per Share (EPS) up at Rs 33.70 from Rs 18.91 in the year ago period

Misses

  • The rising cost of raw materials and logistic issues, along with a decline in generic business, is a cause of concern for the company 

Things to know about Divi’s Laboratories 

  • Divi’s was started to be a ‘Reliable supplier of APIs’, thereby achieving a leadership position through sustainable chemistry.
  • Over the past 30 years, various diverse teams have provided high-quality Generic APIs, Custom Manufacturing solutions to several Big Pharma, and, most recently, highly specialized Nutraceutical ingredients.
  • Divi’s has been a global leader in more than 10 Generic APIs, supplying 100’s/1000’s tonnes every year to customers in more than 95 countries.
  • Divi’s is competent in handling high energetic reactions with high potency to address unmet requirements of the Big Pharma customers, making it one of the top ten custom manufacturers of API in pharma.
  • Divi’s is one of the selected nutraceutical ingredients manufacturers that offers a complete range of carotenoids at a very competitive offering for food, feed, and dietary supplements all over the world.
  • Divis Laboratories’ market capitalization stood at ~ Rs. 116,130 crores
  • The company’s P/E ratio traded at 45.1
  • ROCE and ROE of the company were recorded at 32.1% and 23.9%, respectively

To read the RA disclaimer, please click here.
Research Analyst: Bavadharini KS

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