Divi’s Laboratories Share Price In Focus; Falls 3%

On December 05, 2024, Divi’s Laboratories share price (NSE: DIVISLAB) dropped to the day’s low of ₹5,866.10 during early trade. At 11:30 AM on the NSE, the share price was trading 2.98% lower at ₹6,069.95.

Divi’s Laboratories informed investors that it has been penalised by the Directorate of Enforcement for a procedural delay in submitting annual performance reports (APRs) regarding its investments in overseas subsidiaries—Divi’s Laboratories Europe AG and Divis Laboratories (USA) Inc.

Divi’s Laboratories Fined for Report Delay

On Wednesday, after market hours, Divi’s Laboratories informed investors through an exchange filing that the Directorate of Enforcement’s Joint Director, Hyderabad Zonal Office, had imposed a penalty of ₹6 lakh each for delays in submitting the annual performance reports (APRs) for its overseas subsidiaries.

Despite the penalty, the company assured that the financials would not be impacted, and the fine would be paid within the prescribed timeline.

Q2 FY25 Financial Highlights

For the quarter ending September 2024, the company reported a 46.5% year-on-year (YoY) increase in consolidated profit after tax, reaching ₹510 crore, driven by forex gains of ₹29 crore.

Revenue grew by 22.5% YoY to ₹2,338 crore in Q2, compared to ₹1,909 crore in the same quarter of the previous year.

The company’s margins also saw an improvement, rising to 30.6% from 25.1% during the quarter.

About Divi’s Laboratories

Divi’s Laboratories is a leading global manufacturer of active pharmaceutical ingredients (APIs) and intermediates, serving major pharmaceutical companies worldwide. Established in 1990, the company is known for its expertise in the development and production of high-quality APIs, as well as its contributions to the global generics industry. Divi’s Laboratories operates state-of-the-art manufacturing facilities in India, with a strong focus on research and development to support the production of complex molecules and innovative drug solutions.

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