Operating profit margin has declined from 33.48% to 25.09%, leading to 22.87% decline in operating profit to Rs 479.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 40.79% to 39.28%.   Employee cost increased from 11.58% to 14.70%.   Other expenses rose from 16.33% to 19.56%.   

Other income rose 7.50% to Rs 86 crore.  PBIDT fell 19.40% to Rs 565 crore.  Provision for interest remained nil.  

PBDT fell 19.54% to Rs 564 crore.  Provision for depreciation rose 10.47% to Rs 95 crore.  

Profit before tax down 23.74% to Rs 469.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 121 crore, compared to Rs 122 crore.  Effective tax rate was 25.80% compared to 19.84%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 29.41% to Rs 348.00 crore.  

Promoters’ stake was 51.93% as of 30 September 2023 ,compared to 51.94% as of 30 September 2022 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Divis Laboratories has declined 10.27% to Rs 3687 crore.  

Operating profit margin has declined from 35.73% to 26.66%, leading to 33.04% decline in operating profit to Rs 983.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 37.75% to 41.30%.   Employee cost increased from 11.31% to 14.19%.   Other expenses rose from 15.99% to 18.16%.   

Other income fell 1.18% to Rs 167 crore.  PBIDT fell 29.75% to Rs 1150 crore.  

PBDT fell 29.77% to Rs 1149 crore.  Provision for depreciation rose 11.24% to Rs 188 crore.  

Profit before tax down 34.49% to Rs 961.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 257 crore, compared to Rs 271 crore.  Effective tax rate was 26.74% compared to 18.47%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 41.14% to Rs 704.00 crore.  

Promoters’ stake was 51.93% as of 30 September 2023 ,compared to 51.94% as of 30 September 2022 .  

Full year results analysis.

Net sales (including other operating income) of Divis Laboratories has declined 13.31% to Rs 7767 crore.  Operating profit margin has declined from 43.33% to 30.49%, leading to 39% decline in operating profit to Rs 2,368.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 36.66% to 38.84%.   Purchase of finished goods cost rose from 0.15% to 0.28%.   Employee cost increased from 9.98% to 12.59%.   Other expenses rose from 12.28% to 17.70%.   

Other income rose 202.98% to Rs 345 crore.  PBIDT fell 32.10% to Rs 2713 crore.  Provision for interest rose 25% to Rs 1 crore.  Loan funds declined from Rs 3.69 crore as of 31 March 2022 to Rs 3.26 crore as of 31 March 2023.  Inventories rose to Rs 3,000.41 crore as of 31 March 2023 from Rs 2,828.62 crore as of 31 March 2022.  Sundry debtors were lower at Rs 1,792.53 crore as of 31 March 2023 compared to Rs 2,423.88 crore as of 31 March 2022.  Cash and bank balance rose to Rs 4,213.09 crore as of 31 March 2023 from Rs 2,818.88 crore as of 31 March 2022.  Investments rose to Rs 77.05 crore as of 31 March 2023 from Rs 72.01 crore as of 31 March 2022 .  

PBDT fell 32.12% to Rs 2712 crore.  Provision for depreciation rose 10.11% to Rs 343 crore.  Fixed assets increased to Rs 4,929.20 crore as of 31 March 2023 from Rs 4,787.49 crore as of 31 March 2022.  Intangible assets declined from Rs 7.49 crore to Rs 5.28 crore.  

Profit before tax down 35.69% to Rs 2,369.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 545 crore, compared to Rs 723.05 crore.  Effective tax rate was 23.01% compared to 19.63%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 38.39% to Rs 1,824.00 crore.  

Equity capital stood at Rs 53.09 crore as of 31 March 2023 to Rs 53.09 crore as of 31 March 2022.  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 51.94% as of 31 March 2023 ,compared to 51.94% as of 31 March 2022 .  

Cash flow from operating activities increased to Rs 2,459.73 crore for year ended March 2023 from Rs 1,911.80 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 473.02 crore, compared to Rs 713.20 crore during the year ended March 2022.  

Other highlights

In Q2 FY24, company had a forex gain of Rs 11 crore as against a gain of Rs 31 crore during the corresponding quarter of last year.

Divis Laboratories : Consolidated Results

Quarter ended Year to Date Year ended Particulars 202309 202209 Var.(%) 202309 202209 Var.(%) 202303 202203 Var.(%) Net Sales (including other operating income) 1,909.00 1,855.00 2.91 3,687.00 4,109.00 -10.27 7,767.00 8,959.83 -13.31 OPM (%) 25.09 33.48 -839 bps 26.66 35.73 -907 bps 30.49 43.33 -1,284 bps OP 479.00 621.00 -22.87 983.00 1,468.00 -33.04 2,368.00 3,881.94 -39.00 Other Inc. 86.00 80.00 7.50 167.00 169.00 -1.18 345.00 113.87 202.98 PBIDT 565.00 701.00 -19.40 1,150.00 1,637.00 -29.75 2,713.00 3,995.81 -32.10 Interest 1.00 0 - 1.00 1.00 0 1.00 0.80 25.00 PBDT 564.00 701.00 -19.54 1,149.00 1,636.00 -29.77 2,712.00 3,995.01 -32.12 Depreciation 95 86 10.47 188 169 11.24 343 311.51 10.11 PBT 469.00 615.00 -23.74 961 1467 -34.49 2369 3683.5 -35.69 Share of Profit/(Loss) from Associates 0 0 - 0 0 - 0 0 - PBT before EO 469 615 -23.74 961 1467 -34.49 2369 3683.5 -35.69 EO Income 0 0 - 0 0 - 0 0 - PBT after EO 469 615 -23.74 961 1467 -34.49 2369 3683.5 -35.69 Taxation 121 122 -0.82 257 271 -5.17 545 723.05 -24.62 PAT 348 493 -29.41 704 1196 -41.14 1824 2960.45 -38.39 Minority Interest (MI) 0 0 - 0 0 - 0 0 - Net profit 348 493 -29.41 704 1196 -41.14 1824 2960.45 -38.39 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 348 493 -29.41 704 1196 -41.14 1824 2960.45 -38.39 EPS (Rs)* 13.11 18.57 -29.41 26.52 45.05 -41.14 68.71 111.52 -38.39 * EPS is on current equity of Rs 53.09 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database