Divi’s Laboratories has performed better despite US FDA actions regarding cGMP during third quarter ended December 2016. Its standalone net profit increased by 8.7 per cent to Rs.268.32 crore from Rs.246.76 crore in the corresponding period of last year. EBDITA moved up by 18.2 per cent to Rs.399.27 crore from Rs.337.71 crore. Its net sales increased by 13.3 per cent to Rs.973 crore from Rs.859 crore. EPS increased marginally to Rs.10.11 from Rs.9.30 in the last period.

The company received Form 483 with 5 observations from US FDA during November 2016. It has outlined appropriate remediation measures and is monitoring the effectiveness of the corrective and preventive actions towards cGMP compliance.

For the nine months ended December 2016, Divi’s Labs net sales increased by 13.3 per cent to Rs.2,992 crore from Rs.2,641 crore in the similar period of last year. Its net profit remained flat at Rs.794 crore as compared Rs.789 crore. EPS remained at Rs.29.91 as against Rs 29.72 in the last period. Results for nine months period included the one-time ex-gratia of Rs.79 crore paid to employees on the occasion of completion of 25 year’s formation of the company.