DIVIS LABORATORIES Announces Quarterly Results (3QFY20); Net Profit Down 4.9%

Thu, 6 Feb

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

DIVIS LABORATORIES Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	13,429	14,456	13,905	-3.8%	3.5%
Other income	Rs m	346	470	403	-14.3%	16.6%
Turnover	Rs m	13,775	14,926	14,308	-4.1%	3.9%
Expenses	Rs m	8,196	9,550	8,936	-6.4%	9.0%
Gross profit	Rs m	5,233	4,906	4,969	1.3%	-5.1%
Depreciation	Rs m	425	459	467	1.7%	9.9%
Interest	Rs m	25	38	16	-59.1%	-38.5%
Profit before tax	Rs m	5,129	4,879	4,889	0.2%	-4.7%
Tax	Rs m	1,334	1,311	1,282	-2.2%	-3.9%
Profit after tax	Rs m	3,795	3,568	3,607	1.1%	-4.9%
Gross profit margin	%	39.0	33.9	35.7
Effective tax rate	%	26.0	26.9	26.2
Net profit margin	%	27.5	23.9	25.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 3.5% on a year-on-year (YoY) basis. The expenses were up by 9.0% YoY during the same period.
• The company's operating profit declined by 5.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 35.7% in 3QFY20 as against 39.0% in 3QFY19.
• Depreciation charges increased by 9.9% and finance costs declined by 38.5% YoY, respectively.
• Other income increased by 16.6% YoY during the quarter.
• Net profit for the quarter declined by 4.9% YoY. Net profit margins during the quarter declined from 27.5% in 3QFY19 to 25.2% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 3.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 6.4% QoQ during the same period.
• The company's operating profit increased by 1.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 35.7% in 3QFY20 as against 33.9% in 2QFY19.
• Net profit for the quarter increased by 1.1% QoQ, while net profit margins increased from 23.9% in 2QFY19 to 25.2% in 3QFY20.

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

Get Details: First Stock to Potentially Accumulate Rs 7 Crore Long-term Wealth

DIVIS LABORATORIES Share Price Performance

Over the last one year,DIVIS LABORATORIES share price has moved up from Rs 1,654.1 to Rs 2,049.8, registering a Gain of Rs 395.7 or around 23.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,040.5 (up 0.7%). Over the last one year it has moved up from 13,863.1 to 14,040.5, a gain of 177 points (up 1.3%).

Overall, the S&P BSE SENSEX is up 12.4% over the year.

Current Valuations

At the current price of Rs 2,049.8, the price to earnings (P/E) ratio of DIVIS LABORATORIES stands at 42.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.8 times.