Divi's Laboratories net profit has remained almost stagnant at Rs.221 crore during the third quarter ended December 2014 as compared to Rs.219 in the corresponding period of last year. Despite forex gain of Rs.11.16 crore as compared to forex loss of Rs.5.34 crore, its net profit remains almost standstill. Its operations were affected for a brief period during October 2014 on account of Hudhud cyclone at Visakhapatnam. The net sales improved by 14.7 per cent to Rs.788 crore from Rs.687 crore. EPS worked out to Rs.16.62 as against Rs.16.50 in the last period.
For the nine months ended December 2014, Divi's net sales increased by 27.6 per cent to Rs.2,258 crore from Rs.1,769 crore and its EBDITA moved up by 22.5 per cent to Rs.877 crore from Rs.716 crore. However, its net profit increased only by 3.2 per cent to Rs.618 crore from Rs.599 crore. Its other income declined sharply to Rs.48 crore from Rs.93 crore mainly due to lower forex gain of Rs.17 crore during the period under review as against Rs.68 crore in the last period.
Divis Labs is now planning set up a third manufacturing site to augment capacities besides derisking its business. The company made an application to the Govt of Andhra Pradesh for allotment of land near Kakinada and the company is awaiting favourable response. The company proposes to make an initial investment of Rs.500 crore on this facility.