Divi’s Laboratories to expand capacity at manufacturing facility with investment of ₹650 crore to ₹700 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Divi’s Laboratories on Thursday, April 25, said it is planning to expand its capacity at its manufacturing facilicity with an estimated investment of up to ₹700 crore.

“The company is in the process of entering into a long-term supply agreement with a customer and is planning for capacity addition at its manufacturing facility with an estimated investment of ₹650 crore to ₹700 crore,” the company said in a stock exchange filng.

It added that the same would be funded via internal accruals. The proposed facility is estimated to be operational around January 2027.

Divi’s Laboratories said it could not disclose any further details because of the confidentiality agreement it had signed with the customer.

The pharma major reported a 17% year-on-year increase in its net profit to ₹358 crore for the third quarter of the 2023-24 fiscal year. It fell short of CNBC-TV18’s poll of ₹444 crore.

Comparing the Q3 performance to the same period last year, the company’s profit has surged from ₹306 crore to ₹358 crore. However, revenue came in at ₹1,855 crore, marking an 8.6% YoY growth but missing CNBC’s poll estimate of ₹2,083.8 crore.

Divi’s Laboratories shares were trading 1.28% higher at ₹3862.65 apiece at 1.10 pm. The stock has gained 13.33% in the past month.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow