Divi’s Laboratories Ltd shares plunge over 13% to hit 52-week low 2,796 on the BSE in Friday’s session after the pharma company reported its third quarter net profit below analysts’ estimates. The consolidated net profit of the Hyderabad-based company came in at Rs. 307 crore, which was about 66% lower than 902 crore in the same quarter last year.
Meanwhile, the drugmaker’s consolidated revenue from the company’s operations declined 31% from the previous year during the quarter under review 1,708 crore as against 2,493 crore, while the cost of inventory in the third quarter was 123 crores. The company said material consumption accounted for about 43% of sales revenue in the quarter due to a change in product mix.
Divi’s Labs manufactures Active Pharmaceutical Ingredients which are the key biologically active ingredients in a medicine that help have the desired health effects. The company also manufactures chemical substances used in making drugs. The pharma stock has declined over 32% in a span of one year.
For the 9-month period ending December 31, 2022, the company said it earned a profit after tax (PAT) of 1,502 crore on a total income of 6,099 crores against PAT 2,066 crore on a total income of 6,503 crore during the corresponding previous period.
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