Divi’s Labs at new high

Divi’s Labs posted a good set of numbers for Q2FY21, despite a forex loss of Rs.16 crore. Looks like the benefits of COVID-19-related products such as HCQS, Favipiravir, and Remdesivir did contribute positively to the second quarter earnings.

On an 18% (YoY) rise in consolidated total income, the company posted a 46% jump in net profit at Rs.520 crore.

The company said that it has been able to have near normal operations during the quarter.

The company has capitalized assets of Rs.615 crore during the quarter and the total capitalization done during H1FY21 amounted to Rs.830 crore. It expects to complete the ongoing capex programs by end of the financial year.

Apart from the existing capex programs, the company is taking up a new capex for an aggregate amount of Rs.400 crore for meeting new business opportunities in the custom synthesis projects; and needed to be completed on fast track.

The market is obviously super thrilled with the numbers as it went on to hit a new high today at Rs.3448.10 and continues to figure among the top five gainers on the BSE. Currently, it remains 6.5% higher at Rs.3441 levels.