Operating profit margin has jumped from 40.46% to 43.46%, leading to 21.71% rise in operating profit to Rs 852.05 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 29.79% to 37.18%.   Purchase of finished goods cost rose from 0.24% to 0.30%.   Employee cost decreased from 11.80% to 10.47%.   Other expenses fell from 13.26% to 11.65%.   

Other income rose 107.56% to Rs 35.97 crore.  Provision for interest rose 21.74% to Rs 0.28 crore.  

Provision for depreciation rose 30.36% to Rs 73.26 crore.  

Profit before tax grew 23.22% to Rs 814.48 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 257.37 crore, compared to Rs 168.92 crore.  Effective tax rate was 31.60% compared to 25.56%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 13.22% to Rs 557.11 crore.  

Promoters' stake was 51.95% as of 30 June 2021 ,compared to 51.97% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Divis Laboratories has increased 29.20% to Rs 6969.4 crore.  

Operating profit margin has jumped from 33.78% to 41.04%, leading to 56.95% rise in operating profit to Rs 2,859.94 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 39.97% to 34.02%.   Purchase of finished goods cost fell from 0.29% to 0.08%.   Employee cost increased from 11.29% to 11.72%.   Other expenses fell from 15.32% to 13.62%.   

Other income fell 67.01% to Rs 62.56 crore.  Provision for interest fell 85.74% to Rs 0.87 crore.  Loan funds declined from Rs 38.85 crore as of 31 March 2020 to Rs 4.83 crore as of 31 March 2021.  Inventories rose to Rs 2,145.23 crore as of 31 March 2021 from Rs 1,863.86 crore as of 31 March 2020.  Sundry debtors were higher at Rs 1,676.52 crore as of 31 March 2021 compared to Rs 1,413.35 crore as of 31 March 2020.  Cash and bank balance rose to Rs 2,156.03 crore as of 31 March 2021 from Rs 122.63 crore as of 31 March 2020.  Investments declined from Rs 971.36 crore as of 31 March 2020 to Rs 0.01 crore as of 31 March 2021.  

Provision for depreciation rose 37.24% to Rs 255.59 crore.  Fixed assets increased to Rs 4,409.54 crore as of 31 March 2021 from Rs 3,697.94 crore as of 31 March 2020.  Intangible assets increased from Rs 3.60 crore to Rs 4.95 crore.  

Profit before tax grew 46.53% to Rs 2,666.04 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 681.75 crore, compared to Rs 442.92 crore.  Effective tax rate was 25.57% compared to 24.34%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 44.15% to Rs 1,984.29 crore.  

Equity capital stood at Rs 53.09 crore as of 31 March 2021 to Rs 53.09 crore as of 31 March 2020.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 51.95% as of 31 March 2021 ,compared to 51.97% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 1,946.93 crore for year ended March 2021 from Rs 1,215.94 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 910.19 crore, compared to Rs 1,183.21 crore during the year ended March 2020.

Other Highlights

Forex gain for the current quarter amounted to Rs 20 crore as against a gain of Rs 5 crore during the corresponding quarter of the last year.