Divi’s Labs Net Profit Rises 30% on Year, Falls Sequentially in June Quarter

Divi's Laboratories Ltd. reported a net profit of ₹5.57 billion for the June quarter, up 30% from a year ago but down over 16% from the March quarter. Revenue rose 14% on year to ₹23.57 billion but fell 7% on quarter.

The company saw a boost from higher volumes in its two core segments—generic APIs and nutraceuticals, and custom synthesis of APIs and specialty ingredients. New launches in the contrast media segment and better capacity utilisation also contributed to the year-on-year growth.

Total expenses for the quarter rose 12% on year to ₹17.29 billion. Raw material costs increased 12% to ₹9.89 billion, while employee costs rose nearly 16% to ₹3.30 billion. Other expenses were ₹3.67 billion, up 11% on year. Depreciation and amortisation expenses rose 15% to ₹1.12 billion.

Other income rose to ₹1.19 billion from ₹790 million a year ago. The company also reported a forex gain of ₹390 million, compared to a ₹10 million loss in the same quarter last year.