Divi's Labs PAT Slumps By 64.2% In Q4FY23

Divi's Laboratories on Saturday announced its earnings for the fourth quarter and full year FY23. The company posted a drop in its net profits by 64.2 per cent year on year (YoY) in the March quarter to Rs 320 crores down from 894 crores in the same quarter of the previous year. 

The pharma major's Profit After Tax (PAT) for FY23 also dropped by 38 per cent YoY to be recorded at Rs 1,823 crore against 2,960 crores in FY22. Divi's Labs informed that the company does not have any discontinued operations and the profit for the year represents the profits from continuing operations only.  

The company's consolidated sales also dipped by 21.5 per cent YoY to Rs 2,016 crore in Q4FY23 compared with Rs 2,570 crores in Q4FY22. For FY23 the consolidated revenue fell by 10.6 per cent to Rs 8,111 crore against Rs 9,073 crore in FY22. The company's in an exchange filing stated that the low sales are recorded on account of a significantly lower volume of covid situational opportunity.

Divi's Labs also informed that the company does not have any discontinued operations and the profit for the year represents the profits from continuing operations only.  

The pharmaceutical company has proposed a dividend of Rs 30 per share of face value 2 each for the financial year 2022-23.

Divi's Labs expenses surged by 3.6 per cent YoY for the Jan-March quarter to be registered at Rs 1,550 crores against Rs 1,495 crores recorded in Q4FY22. Whereas in FY23 the expenses soared by 6.5 per cent to Rs 5,743 crores versus Rs 5,390 posted in FY22.

The company's stock closed 1.86 per cent lower on Friday at Rs 3,097.75 per scrip on the Bombay Stock Exchange (BSE).