Divi's Laboratories, a Rs. 4,000 crore pharma giant from Hyderabad, has suffered a setback during the third quarter ended December 2017 and its net profit declined by 16.3 per cent to Rs. 225 crore from Rs. 268 crore in the corresponding period of last year.
During the quarter, there was a forex loss of Rs. 16 crore as against a forex gain of Rs. 0.65 crore. Its net sales increased by 6.4 per cent to Rs. 1,038 crore from Rs. 976 crore. With lower profit, EPS declined to Rs. 8.46 from Rs. 10.11.
Divi's scrip declined sharply by Rs. 30.50 to Rs.1,091.50 today from its previous day's close of Rs.1,122 on BSE. The scrip price movements remained under pressure due to US FDA actions regarding cGMP issues. The company's Unit-II at Visakhapatnam was inspected by the US FDA during September 2017 and US FDA has issued Establishment Inspection Report for the same. The scrip touched to its yearly highest level at Rs.1141.75 on December 17, 2017 as against its lowest of Rs. 533.10 on May 29, 2017.
For the nine months ended December 2017, Divi's net sales declined by 8.3 per cent to Rs. 2,749 crore from Rs. 2,999 crore in the similar period of last year due to the import alert issued by US FDA. The same was resolved now. Its net profit declined by 23.4 per cent to Rs. 608 crore from Rs. 794 crore. EPS worked out to Rs. 22.90 as against Rs. 29.91 in the last period. It incurred forex gain of Rs. 1.63 crore as compared to forex loss of Rs. 10.06 crore
During the quarter, there was a forex loss of Rs. 16 crore as against a forex gain of Rs. 0.65 crore. Its net sales increased by 6.4 per cent to Rs. 1,038 crore from Rs. 976 crore. With lower profit, EPS declined to Rs. 8.46 from Rs. 10.11.
Divi's scrip declined sharply by Rs. 30.50 to Rs.1,091.50 today from its previous day's close of Rs.1,122 on BSE. The scrip price movements remained under pressure due to US FDA actions regarding cGMP issues. The company's Unit-II at Visakhapatnam was inspected by the US FDA during September 2017 and US FDA has issued Establishment Inspection Report for the same. The scrip touched to its yearly highest level at Rs.1141.75 on December 17, 2017 as against its lowest of Rs. 533.10 on May 29, 2017.
For the nine months ended December 2017, Divi's net sales declined by 8.3 per cent to Rs. 2,749 crore from Rs. 2,999 crore in the similar period of last year due to the import alert issued by US FDA. The same was resolved now. Its net profit declined by 23.4 per cent to Rs. 608 crore from Rs. 794 crore. EPS worked out to Rs. 22.90 as against Rs. 29.91 in the last period. It incurred forex gain of Rs. 1.63 crore as compared to forex loss of Rs. 10.06 crore