Contract drug maker Divi’s misses revenue view on excessive materials prices – Company Technique & Outlook

Indian contract drug producer Divi’s Laboratories reported third-quarter revenue beneath estimates ​on Wednesday, as excessive uncooked materials ​prices and a one-off cost attributable to ‌adjustments in India’s labour codes weighed on its bottomline.

The Hyderabad-based firm’s consolidated internet revenue marginally fell to ₹583 crore ($64.31 million) within the quarter ended December 31, from ₹589 crore a yr earlier.

Analysts, on common, had anticipated ₹618 crore, in response to knowledge compiled by LSEG.

World ‌pharmaceutical corporations have been more and more seeking to Indian contract drug producers corresponding to Divi’s, Sai Life Sciences and Piramal Pharma as a part of their plans to diversify provide chain past China.

Demand for customised manufacturing of chemical ​compounds from massive pharmaceutical firms stayed robust within the quarter.

Nevertheless, the ‌value of supplies consumed jumped 19 per cent, pushing up its whole bills 9.7 per cent ​to ‌₹1,838 crore.

Moreover, Divi’s Laboratories chalked up a ‌one-time cost of ₹74 crore because it complied with India’s new labour legal guidelines.

Income ‌from operations ​rose 12.2 per cent ​to ₹2,604 crore, beating analysts’ common estimate of ₹2,596 crore.

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