Divi's Laboratories has posted strong performance during the first quarter ended June 2011 and its standalone net profit increased by 18.9 per cent to Rs.102.59 crore from Rs.86.29 crore in the corresponding period of last year despite significant higher provision for taxation. The company provided Rs.24.65 crore for current tax as compared to Rs.7.19 crore in the last period as its EOU unit has now come under regular tax provisions and the first SEZ unit is eligible for 50 tax exemption. The company's standalone net sales jumped by 36.6 per cent to Rs.358.55 crore from Rs.262.54 crore. With better growth in profits, its earnings per share improved to Rs.7.74 from Rs.6.53.
Divi's new unit at DSN SEZ has commenced commercial operations from June 1, 2011. The company has had an inspection by the US FDA, with no major observations, for its Unit-1 at village, Lingojigudem, Choutuppal Mandal near Hyderabad during July, 2011. The audit concluded with minor observations primarily about additional records for further improvement of existing records. The purpose of this inspection was for product pre-approval and general cGMP.
The company has made the allotment of 26520 equity shares of Rs.2/- each to the employees under ESOP 2006 Scheme of the company. Consequent to the above allotment, the paid up share capital of the company will get increased.