Divis Laboratories Announces Rs 80 Crore Bonanza For Employees

Employees and whole-time directors of Hyderabad-based pharma company Divis Laboratories will get a one-time payment of Rs 79 crore in total on the occasion of completion of 25 years of formation of the company. 
 
This one-time payment was approved by the company's board on Friday.  Established in 1990, Divis Laboratories employs about 10,000 personnel.
 
The company manufactures active pharmaceutical ingredients (APIs) and intermediates. APIs are substances used in the manufacture of drugs.
 
Divis Laboratories also on Friday announced its first-quarter earnings. The numbers were better than the Street's estimates. 
 
Net profit rose 23 per cent to Rs 301 crore on 25 per cent growth in sales to Rs 1,006 crore.
 
Divis Laboratories said that the special payment of Rs 79 crore will be reflected in its September quarter numbers. 
 
Domestic brokerage Religare has a "buy" rating on the stock. "Divis is likely to capitalise Rs 400 crore in FY17 and FY18 each as it sets up a greenfield facility in Kakinada and expands its Vizag unit. Historically, Divis is known for tight control over capex and we believe the huge upcoming capex imparts strong revenue visibility over the next few years," the brokerage said. 
 
Shares of Divis Lab today rose as much as 7.5 per cent today to hit a fresh 52-week high of Rs 1,281, before ending 5.7 per cent higher at Rs 1,261. In comparison, the Nifty50 index ended 0.35 per cent lower today.