DIVIS LABORATORIES Announces Quarterly Results (2QFY20); Net Profit Down 10.3%

Mon, 11 Nov

DIVIS LABORATORIES has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

DIVIS LABORATORIES Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	12,850	11,399	14,456	26.8%	12.5%
Other income	Rs m	801	316	470	48.7%	-41.2%
Turnover	Rs m	13,651	11,716	14,926	27.4%	9.3%
Expenses	Rs m	7,709	7,613	9,550	25.4%	23.9%
Gross profit	Rs m	5,141	3,786	4,906	29.6%	-4.6%
Depreciation	Rs m	424	438	459	4.8%	8.4%
Interest	Rs m	2	3	38	1084.4%	1479.2%
Profit before tax	Rs m	5,516	3,661	4,879	33.3%	-11.5%
Tax	Rs m	1,539	988	1,311	32.7%	-14.8%
Profit after tax	Rs m	3,977	2,674	3,568	33.5%	-10.3%
Gross profit margin	%	40.0	33.2	33.9
Effective tax rate	%	27.9	27.0	26.9
Net profit margin	%	29.1	22.8	23.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 12.5% on a year-on-year (YoY) basis. The expenses were up by 23.9% YoY during the same period.
• The company's operating profit declined by 4.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 33.9% in 2QFY20 as against 40.0% in 2QFY19.
• Depreciation charges increased by 8.4% and finance costs increased by 1479.2% YoY, respectively.
• Other income declined by 41.2% YoY during the quarter.
• Net profit for the quarter declined by 10.3% YoY. Net profit margins during the quarter declined from 29.1% in 2QFY19 to 23.9% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 26.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 25.4% QoQ during the same period.
• The company's operating profit increased by 29.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 33.9% in 2QFY20 as against 33.2% in 1QFY19.
• Net profit for the quarter increased by 33.5% QoQ, while net profit margins increased from 22.8% in 1QFY19 to 23.9% in 2QFY20.

To see how DIVIS LABORATORIES has performed over the last eight quarters,please visit here.

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DIVIS LABORATORIES Share Price Performance

Over the last one year,DIVIS LABORATORIES share price has moved up from Rs 1,550.7 to Rs 1,708.0, registering a Gain of Rs 157.3 or around 10.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,125.3 (up 0.3%). Over the last one year it has moved down from 14,692.8 to 13,125.3, a gain of 1,567 points (down 10.7%).

Overall, the S&P BSE SENSEX is up 14.3% over the year.

Current Valuations

At the current price of Rs 1,708.0, the price to earnings (P/E) ratio of DIVIS LABORATORIES stands at 35.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.5 times.