Divis Laboratories Ltd - 532488 - Shareholding for the Period Ended June 30, 2021
Divis Laboratories Ltd has submitted to BSE the Shareholding Pattern for the Period Ended June 30, 2021. For more details, kindly Click here09-07-2021
09-07-2021
Divis Laboratories Ltd - 532488 - Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018
Submission of Certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 30 June, 202109-07-2021
Divis Laboratories Ltd - 532488 - Statement Of Investor Complaints For The Quarter Ended June 2021
No.of Investor complaints pending at the beginning of the quarter No.of Investor complaints received during the quarter No.of Investor complaints disposed of during the quarter No.of Investor complaints unresolved at the end of the quarter 0330 Name of the Signatory :- M Satish ChoudhuryDesignation :- Company Secretary and Compliance Officer09-07-2021
Divis Laboratories Ltd - 532488 - Closure of Trading Window
Pursuant to the Company's Code of Conduct for Prevention of Insider Trading (the Code), we hereby inform that the Trading Window for dealing in securities of the Company will remain closed for all Designated Persons and their Immediate Relatives, as well as Insiders covered under the Code, from 01 July, 2021 till 48 hours after the declaration of Unaudited Financial Results for the first quarter ending on 30 June, 2021. The date of Board Meeting for declaration of the financial results of the Company for the first quarter ending on 30 June, 2021 will be intimated in due course.30-06-2021
Divi’s Laboratories is doubling down on its generic API play
A significant player in the active pharmaceutical ingredient (API) pharma sector, Divi’s Laboratories, is second only to Sun Pharma in terms of market capitalization. The company rode through FY21 on double-digit growth, ending the year on a stellar note. One of the largest API manufacturers in the world, Divi’s Labs is a reliable supplier of generic APIs and partner of choice for contract research and manufacturing services (CRAMS) for the big pharma companies of the world. As Divi’s Labs’ 2018 capital expenditure (capex) plan nears completion, investors are excited about its custom synthesis (CS) growth prospects, new growth opportunities identified by the company and legal resolution of the Kakinada plant. Quick Takes: Divi’s Laboratories has two manufacturing locations, unit-I near Hyderabad in Telangana, and unit-II near Visakhapatnam in Andhra Pradesh (AP) Average raw material cost for most for the API industry hovers between 50-65%, whereas Divis has lowered it to 38%-42% over the last two years The company has ventured into the contrast media market worth $4-$6 billion with global growth of 15-25% Capital expenditure (capex) plan of Rs 600 crore is earmarked for Kakinada plant All round growth in March 2021 quarter Divi’s Laboratories’ operating revenues came in at Rs 1,788 crore in Q4FY21 compared to Rs 1,390 crore a year ago. Revenue growth was driven by strong growth in all three segments - generic APIs (24% YoY growth), custom synthesis (25% YoY growth) and nutraceuticals (83% YoY growth). Operating margins expanded by eight percentage points YoY to 40% aided by a superior product mix and cost efficiencies. Raw material cost as a percentage of sales (39%) was constant YoY while other expenses and employee costs declined. Net profit came in at Rs 502 crore, a rise of 29% YoY. Exports accounted for 90% of total revenues. The US and Europe were major contributors accounting for 71% of total revenues. Divi’s Labs’ stock price gained 4% after March 2021 quarter results were announced on May 29, 2021 Nutraceutical capacity expansion to spur growth Divi’s Labs is engaged in the manufacture of generic active pharmaceutical ingredients (APIs), custom synthesis (CS) and nutraceuticals. While generic APIs and CS constituted 51% and 40% of total revenues, nutraceuticals were at Rs 156 crore, 9% of total revenue mix. The company established its nutraceutical facility at unit-II in Visakhapatnam in 2007. The nutraceutical product portfolio includes vitamins and carotenoids. Divi’s Labs supplies carotenoids to food, dietary supplement and feed manufacturers around the world. Carotenoids are natural pigments extracted from plants and are used in manufacture of dietary supplements which act as antioxidants protecting against chronic diseases and enhancing immunity. They also increase shelf life of food articles and are used by feed manufacturers (for instance in fish feed). The majority of Divi’s Labs’ customers are from the feed industry, especially salmon, though in the human segment, growth is still in initial stages. According to the management, the carotenoid business is worth about $1 billion globally, distributed among three main players, BASF, DSM and Divi’s. For Divi’s Labs, 95% of its revenues comes from the US and Europe, with the contribution from India very low. The company expanded its capacity by 100% in FY21, and is seeing 10-15% revenue growth because nutraceuticals demand is expected to be driven by immunity requirements in the wake of the pandemic. Reliable custom manufacturer to big pharma Custom synthesis (essentially contract manufacturing services) at Rs 715 crore constituted 40% of total revenues in Q4FY21. The company got CS projects (announced in November 2020) from big pharma companies in Europe and the US. These high return projects were expected to be completed on a war footing within 6-9 months. The company had laid out Rs 400 crore for completing a combination of these projects from several big pharma companies. One of these projects is with MSD Pharmaceuticals (the wholly-owned subsidiary of Merck Sharp & Dohme). Divi’s Labs is the authorized manufacturer for Molnupiravir API for MSD Pharmaceuticals. The company has earmarked three streams of production for Molnupiravir API (used for Covid-19 treatment). One stream of production for exports to MSD Pharma has already started commercial production. The second stream is under validation process and is expected to start commercial production in the coming month. The third stream has been created to cater to VL (voluntary licensing) partners of MSD in India. Divi’s Labs’ ability to fast track critical projects fulfilling large scale commercial quantities within a short time frame will position it favourably in the contract manufacturing services industry, which is expected to grow at a CAGR of 9-12% in the next three years. The company counts 12 out of the top 20 big pharma companies across the US, EU and Japan as its customers for more than 10 years. Re-invigorating the generic API growth engine Divi’s Labs is among global leaders in large volume generic APIs with a product portfolio of 30 APIs. The company is one of the top two API manufacturers in the world for 18 out of the 30 generic API molecules. Generic APIs grew 24% YoY at Rs 912 crore in the March 2021 quarter. Divi’s Labs segregated its generic API growth matrix into four levels. Traditional generic APIs–Naproxen (anti-inflammatory drug), Gabapentin (preventing seizures) and Dextromethorphan (cough suppressant) – are still going strong.These are lifestyle or lifesaving medicines growing at 5-15% YoY with Divi’s Labs holding 65-85% market share. The next level is the new lot of generic APIs – Levodopa (Parkinson’s), Pregabalin (epilepsy), Mesalamine (inflammatory bowel disease), Carbidopa (Parkinson’s) and Valsartan (high blood pressure). The company has 20-30% of market share in this space, but is expecting to reach 60-70% in the near future. For the third leg of growth, Divi’s Labs ventured into contrast media APIs in a big way. Contrast media are substances administered orally or are injected to highlight internal organs (such as angiography) or the structure of the body for x-rays, MRI scans and CT scans. Contrast media is used for diagnosing cancer and is also used in respiratory, nephrological, cardiac and gastrointestinal issues. Covid-19 and its complexities have further increased the use of contrast media substances. The company has also developed new technology of recycling iodine, which will reduce its cost structure in contrast media manufacturing process. The x-ray imaging market is mainly dominated by iodine-based products followed by Gadolinium used in MRIs. The high dose-high volume, contrast media market has very few players and is worth around $4-$6 billion globally, growing at the rate of 15-25%. And lastly 10 new generic products like Ticagrelor (blood thinner), Lacosamide (anticonvulsant), Vildagliptin (anti-diabetic), Rivaroxaban (prevent blood clots), Dabigatran (blood thinner), Brivaracetam (anticonvulsant) with dosage sales of about $20 billion are under validation and regulatory submissions are also in progress. There is a long growth runway for generic APIs. Divi’s getting future ready, Kakinada plant construction to start shortly Divi’s Labs had initiated a capex of Rs 2,500 crore since 2018 to reduce bottlenecks, backward integration for intermediates to minimize dependency on supplies of raw materials from China, upgrading utilities, quality control infrastructure and setting up modern wastewater treatment facilities. The capex was undertaken to prepare Divi’s Labs for new regulations that would come into play 10-15 years down the line and also increase capacity. Out of Rs 2,500 crore, Rs 700 crores of capex is still to go into production. In addition to this, the company is setting up two new plants, unit-III plant at Kakinada and unit-IV plant at Nellore. The management has earmarked Rs 600 capex plan for Kakinada plant and the construction will start as the Covid-19 second wave recedes. Unit-III plant is expected to start accruing returns in the next 2-3 years. Unit-IV plant will be constructed after the completion of the Kakinada plant. With its robust organic expansions, low debt, strong product basket and client relationships, Divi’s Labs stands apart from the rest of its peer group. Its stock has doubled from its 52-week low and gained 30% over the past three months. And investors are hoping that there is more in store.24-06-2021
Divis Laboratories Ltd - 532488 - Submission Of Half Yearly Disclosure On Related Party Transactions
Pursuant to Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, we enclose disclosure of Related Party Transactions on a consolidated basis, in the format specified in the accounting standards, for the half year ended 31 March, 2021. This is for your information and records.01-06-2021
DIVI'S LABORATORIES LTD. - 532488 - Compliances-Reg.24(A)-Annual Secretarial Compliance
Submission of Annual Secretarial Compliance Report for the year ended 31 March, 202101-06-2021
Buy Divis Laboratories: target of Rs 4810: Sharekhan
Sharekhan is bullish on Divis Laboratories has recommended buy rating on the stock with a target price of Rs 4810 in its research report dated May 28, 2021.31-05-2021
Earnings Call for Q4FY21 of Divi's Laboratories
Conference Call with Divi's Laboratories Management and Analysts on Q4FY21 Performance and Outlook. Listen to the full earnings transcript.29-05-2021