Divi's Labs Q3 results: Net profit tanks 65% YoY to Rs 307 cr; stock tumbles 9%

Divi's Laboratories on Friday reported 65% drop in consolidated net profit at Rs 307 crore for the third quarter. It was Rs 902 crore in the same quarter of last year.

Revenue from operations fell 31% to Rs 1,707 crore for the December quarter under review as against Rs 2,493 crore a year ago.

Divi’s Laboratories earned a consolidated total income of Rs 1,822 crore for the third quarter, down about 27% from Rs 2,510 crore in the corresponding quarter of last year.


Other income during the quarter rose multiple times to Rs 114 crore from meagre Rs 16 crore in the last year quarter.

Material consumption for this quarter was about 43% of sales revenue due to change in product mix. Profit before Tax (PBT) for the quarter came in at Rs 436 crore.

Following the announcement of the results, the stock fell over 9% in intraday trade at Rs 2,969 apiece on NSE.

The company has reported an EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 408 crore, which is down almost 63% when compared with Rs 1,097 crore in the last year period. Margins too declined during the third quarter to 23.9%.

For the nine-month period ended December, the company's profit declined 27% to Rs 1,502 crore, compared with Rs 2,066 crore in the same period of last year.

Total income for the nine-month period came in at Rs 6,099 crore as against Rs 6,503 crore in the corresponding period of previous year.

On a standalone basis, the company reported a profit after tax of Rs 311 crore, which is too down over 60%.

According to Trendlyne data, Divi's Labs has an average target of Rs 3862 and the consensus estimate represents an upside of 30.57% from the current levels.

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