Divi’s Laboratories (DIVISLAB) Q4 01/02 earnings summary

Executive summary

• FY2001-02 sales rose 10.14% to Rs 20,705.00 lakh; PAT increased 39.16% to Rs 3,657.28 lakh, with EPS at Rs 31.67.

• Export-led bulk drugs and intermediates business benefited from process efficiencies, product mix and cost control; a second manufacturing site was being developed at Chippada.

Financial highlights

• Sales were Rs 20,705.00 lakh vs Rs 18,798.89 lakh; total income Rs 22,025.03 lakh vs Rs 19,737.26 lakh.

• PBDIT was Rs 5,730.49 lakh vs Rs 4,485.12 lakh; PBT Rs 4,230.59 lakh vs Rs 2,752.76 lakh.

• PAT rose to Rs 3,657.28 lakh from Rs 2,628.09 lakh; EPS increased to Rs 31.67 from Rs 22.75.

• Finance charges fell to Rs 704.59 lakh from Rs 1,002.99 lakh; depreciation was Rs 795.31 lakh vs Rs 729.37 lakh.

• Interim dividend of Rs 5 per share was paid; directors recommended its confirmation as final dividend.

Outlook and guidance

• Chippada project investment was estimated at Rs 42 crore, funded through internal accruals and bank/institutional term loans.

• Initial Chippada production was planned for intermediates; APIs for advanced/regulated markets were targeted after approvals within 2-3 years.

• Existing Choutuppal capacity was nearing full utilization; the second site was intended to expand capacity and provide MNC customers an alternate supply source.