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Shares of Divis Laboratories tanked 13 per cent to hit a 29-month low of Rs 2,830 on the BSE in Friday’s intra-day trade as the company posted weak results for the December quarter (Q3FY23) disappointing investors.
The stock of the pharmaceutical company was quoting at its lowest level since August 2020. In comparison, the S&P BSE Sensex was up 1 per cent at 60,543 at 02:12 pm.
In Q3FY23, Divis Labs reported a 66 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 306.80 crore, on higher than expected fall in revenue. The company’s consolidated revenue came 31.5 per cent lower to Rs 1,707.68 crore as against analyst’s expectation of around Rs 1,888 crore. ICICI Securities had expected the net profit to de-grow 40 per cent YoY to Rs 541 crore.
The earnings before interest, depreciation, tax and amortization (EBIDTA) was down 63 per cent YoY to Rs 408 crore from Rs 1,097 crore in the year-ago period. EBITDA margins contracted sharply to 23.9 per cent from 44 per cent in Q3FY22.
Material consumption for this quarter came to be about 43 per cent of sales revenue due to change in product mix, the company said. The group is engaged in the manufacturing of active pharmaceutical ingredients (API), intermediates, and nutraceutical ingredient.
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