Market News
2 min read | Updated on May 27, 2024, 12:09 IST
SUMMARY
Divi’s Laboratories’ shares were trading higher by nearly 4.5% on Monday and touched a 52-week high of ₹4,359 on Monday. The stock price of the company rose due to a 67% YoY rise in net profit during the fourth quarter of the financial year. The company’s revenue grew 18% YoY in Q4. The board of directors announced a final dividend of ₹30 per share.
Divis Laboratories shares rally over 5%
Shares of Divi’s Laboratories were trading higher by nearly 4.5% on Monday at ₹4,308 per share as investors reacted positively to the company’s financial results for the quarter and year ended March 31, 2024.
The company on Saturday reported a 67.60% year-on-year (YoY) rise in its net profit to ₹538 crore for the fourth quarter of the financial year. The consolidated revenue for the quarter saw a growth of 18% YoY to ₹2,303 crore. On a quarter-on-quarter (QoQ) basis the net profit grew by 50.27% QoQ while the consolidated revenue rose by 24.15% QoQ.
Divi’s Laboratories witnessed a 50% YoY rise in its operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹731 crore.
For the financial year ended March 31, 2024, the company’s net profit declined by 12.28% YoY to ₹1,600 crore. The consolidated revenue during the year grew incrementally at 1% YoY to ₹7,845 crore. The operating EBITDA during the year declined by 6.8% YoY to ₹2,205 crore.
Divi’s Laboratories had recently informed about its plans to increase the capacity at its manufacturing facility. The company said that it is in the process of entering into a long-term supply agreement with a customer for the capacity addition.
Divi’s Laboratories will invest ₹650 crore to ₹700 crore from its internal accruals to fund the project. Due to the confidentiality of the agreement with the customer, more details haven’t been disclosed. The enhanced facility is expected to be operational by January 2027.
The board of directors of Divi’s Laboratories announced a final dividend of ₹30 per share. Shares of the company have risen by nearly 9% since the beginning of the year. The stock has gained over 22% in the last one year.
About The Author
Next Story