Shares of Divis Laboratories climbed over 11 per cent in early trade on Monday after the company on Saturday posted a 92.30 per cent year-on-year rise in net profit at Rs 397.65 crore for the quarter ended September 2018.
It had posted a net profit of Rs 206.78 crore in the corresponding quarter last year.Revenue from operations jumped 44.35 per cent YoY to Rs 1,285 crore in Q2FY19 over Rs 890.20 crore in Q2FY18.The scrip was trading 11.75 per cent up at Rs 1,401.25 at around 9.35 am (IST), while BSE Sensex was up 99 points, or 0.30 per cent, at 33,447 at around the same time.Forex gains for the quarter amounted to Rs 53 crore as against a gain of Rs 11 crore during the corresponding quarter last year.
In order to cater to the increasing opportunities in the generic and big pharma business, the company is taking up two brownfield projects with an aggregate investment of Rs.1200 crores.
Work has already commenced and the projects are expected to be completed by end of the year 2019 barring unforeseen circumstances.
The company is also taking up debottlenecking programs at Unit-1 as well as Unit-2 by investing an aggregate amount of Rs.300 crores which would also create additional capacities for existing products, Divis Laboratories said in a release.