Shares of Divi’s Laboratories spiked by about 6 per cent in morning trade on Monday quoting at ₹3,426.65 (up ₹188.95) after the company reported strong second quarter numbers.

The Hyderabad-based pharmaceutical company logged in a profit of ₹519.59 crore for the second quarter, up 45.63 per cent from the ₹356.78 crore it posted in the corresponding quarter previous year, on consolidated basis.

The company posted a consolidated income of ₹1,762.94 crore for the second quarter, up 19 per cent on strong growth in sales volumes, against ₹1,492.60 crore for the corresponding quarter last year.

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The stock is quoting at a 52-week high.

Broking firms highlighted the company outperforming expectations for the quarter.

According to Motilal Oswal Research, growth was led by healthy traction in generic APIs / custom synthesis (CS), lower raw material prices and better operating leverage. Interestingly, meaningful benefit is yet to accrue from the major capex undertaken earlier.

The company has indicated an additional fast-track capex to cater to the upcoming requirement in its CS customers.

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It raised earnings estimate for FY21/FY22 by 9.5 per cent/11.9 per cent, factoring in new business opportunities, improved business outlook for the nutraceuticals segment, and better capacity utilisation of recently commercialised manufacturing units.

The company stated that it has not experienced any significant impact on its operations, supply chain and ability to recover past dues. As the pandemic continues to evolve, it will continue to closely monitor any material changes to future economic conditions, it said in its results.

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