Dishman Pharma jumps on bonus

Dishman Pharma shot up into the limelight today morning, following its announcement before the opening bell today. The stock which had closed yesterday at Rs.305, went up to an intra day high at Rs.350.

The Board of Directors of the company at its meeting held yesterday has considered and recommended a bonus issue of equity shares in the ratio of 1:1 or one equity share for every one share held,  as on the record date to be determined by the Board.

For Q3Fy16, the company had shown a whopping 95% (YoY) jump in net profit at Rs.469 crore and this was despite a 0.2% fall in net sales at Rs.3887 crore. Cost control and mainly reduction in debt and consequently interest outgo is what helped. Its EBITDA margin for the quarter jumped up from 19% to 28%.

Its interest expense declined by 28%, driven by lower debt. Total debt declined by 8% on YTD basis to Rs.855 crore. Conversion of certain rupee loans into foreign currency loans and repayment of high cost debt also helped bring down the cost.