Divi’s Laboratories (DIVISLAB) Q4 05/06 earnings summary

Executive summary

• FY06 net sales rose 9.71% to Rs.38,111 lakh; PAT increased 6.72% to Rs.7,047 lakh, while export markets generated 90% of turnover.

• Product portfolio expanded with 14 additions; investment and capacity expansion targeted API and custom synthesis opportunities.

Financial highlights

• Net sales Rs.38,111 lakh vs Rs.34,738 lakh YoY; total income Rs.39,174 lakh vs Rs.36,452 lakh.

• PBDIT Rs.12,731 lakh vs Rs.12,168 lakh; PBT Rs.10,691 lakh vs Rs.10,231 lakh; PAT Rs.7,047 lakh vs Rs.6,603 lakh.

• Basic EPS Rs.54.98 vs Rs.51.51; diluted EPS Rs.53.94 vs Rs.51.51. Recommended dividend Rs.10/share, or 100%.

Outlook and guidance

• The API/custom synthesis facility was scheduled to begin operations in Q2 FY07; expanded capacity was intended to support growing customer opportunities.

• Marketing subsidiaries in the US and Europe were expected to commence operations in FY07; commercial supplies for newly qualified custom products were described as promising.

• A 250-acre pharmaceutical SEZ was planned at Chippada, with Rs.200 crore investment over 3–4 years; Unit 2 was converted to an EOU.