Divi's Laboratories, a Rs. 4,000 crore plus pharma major, scrip moved up by over 16 per cent to Rs. 1072 in the morning session on BSE on account of lifting of import alert 66-40 and closing out the warning letter issued to its Unit-II at Visakhapatnam. The market capitalisation increased to Rs. 28,466 crore. The scrip touched to its 52-weeks peak level of Rs. 1319 during November 2016. The scrip touched to its lowest level at Rs. 533.10 on May 29, 2017 due to US FDA action.

The company's second quarter financial performance impacted adversely due to import alert and its net profit declined by 7.6 per cent to Rs. 206.78 crore from Rs. 223.85 crore in the corresponding quarter of last year. Its net sales went down by 11.5 per cent to Rs. 890 crore from Rs. 1,005 crore in the corresponding period of last year. Its EBIDTA also declined marginally to Rs. 310.79 crore from Rs. 311.48 crore.

Its employees cost declined to Rs. 104.82 crore from Rs. 179.64 crore in the last period due to the one-time ex-gratia of Rs. 79 crore paid to employees on the occasion of 25 years' formation of the company. Forex gain for the quarter amounted to Rs. 11 crore as against a loss of Rs. 11 crore during the corresponding quarter of last year. With lower net profit, EPS declined to Rs. 7.79 from Rs. 8.43 in the last period.

For the first half ended September 2017, Divi's net sales declined by 15.4 per cent to Rs. 1,711 crore from Rs. 2,023 crore in the similar period of last year. Its net profit also declined by 27.1 per cent to Rs. 383.32 crore from Rs. 525.66 crore.

The company's unit-II at Visakhapatnam, Andhra Pradesh was inspected by HPRA (Ireland) and JAZMP (Slovenia) and the inspection concluded successfully with no critical observations. However, US FDA, after inspection of this Unit during September 2017, the investigators have issued a Form-483 with 6 observations. The company has taken necessary steps in respect of cGMP and filed its response to the same within the stipulated time.

The company is engaged in manufacturing leading generic compounds, nutraceutical ingredients and custom synthesis of APIs and intermediates for global innovator companies. It has developed 120 products across diverse therapeutic areas. It is exporting 88 per cent of its products to various countries.