MIRA
INFORM REPORT
|
Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
DIVI’S LABORATORIES LIMITED |
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Formerly Known As : |
DIVI'S RESEARCH
CENTRE PRIVATE LIMITED LIABILITY COMPANY LIMITED |
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Registered Office : |
7-1-77/E/1/303,
Dharam Karan Road, Amarpret, Hydrabad – 500016, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.10. 1990 |
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Com. Reg. No.: |
01-11854 |
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CIN No.: [Company
Identification No.] |
L24110AP1990PLC011854 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDD00549D |
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Legal Form : |
A public limited liability
company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers of generic APIs, custom synthesis of active ingredients
and intermediates for innovator companies and other speciality chemicals like
peptide building blocks and Nutraceuticals. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 22000000 |
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Status : |
Active |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established company having excellent track. Available information
indicates large financial responsibility of the company. Payments are correct
and as per commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered Office : |
7-1-77/E/1/303,
Dharam Karan Road, Amarpret, Hydrabad – 500016, Andhra Pradesh, India. |
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Tel. No.: |
91-40-23731318/23731760/23731761 |
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Fax No.: |
91-40-23733242 |
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E-Mail : |
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Website : |
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Area : |
296 sq. ft. |
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Location : |
Rented |
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Factory 1 : |
unit i
[Choutuppal]:
Lingojigudem
Village, Choutuppal Mandal, Nalgonda District - 508 252, Andhra Pradesh |
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Tel. No.: |
91-8694-272092/ 272260 |
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Fax No.: |
91-8694-272685 |
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Factory 2 : |
eou unit
(chippada) / SEZ Unit (chippada)
Chippada Village,
Bheemunipatnam Mandal, Vishakhapatnam District - 531162, Andhra Pradesh. |
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Tel. No.: |
91-8922-245166 |
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Fax No.: |
91-8922-245165 |
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R & D Centers : |
C-26, Industrial Estate,
Sanathnagar, Hyderabad – 500018, Andhra Pradesh Tel. 91-40-23704657 Lingojigudem Village, Choutuppal Mandal, Nalgonda District, Andhra
Pradesh Tel. 91-40-272092/272260 Chippada Village, Bheemunipatnam Mandal, Visakhapatnam District –
531162, Andhra Pradesh DRC – Vizag Village Chippada, Bheemunipatnam, Vishakapatnam – 530 010,
Andhra Pradesh |
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Branches : |
Located at : v United States v Swiss |
DIRECTORS
|
Name : |
Dr. Murali K.
Divi |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
56 years |
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Qualification : |
M. Pharm. Ph.D. |
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Experience : |
31 years |
|
Date of Appointment : |
10.10.1994 |
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Previous
Employment |
Cheminor Drugs Limited - Managing Director |
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Name : |
Mr. N. V Ramana |
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Designation : |
Executive Director |
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Date of Birth/Age : |
49 years |
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Qualification : |
B.Sc.(Chem.) |
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Experience : |
21 years |
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Date of Appointment : |
26.12.1994 |
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Previous
Employment |
Enmark Exim
Services Private Limited - President |
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Name : |
Mr. Madhusudhana
Rao Divi |
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Designation : |
Director - NRI (Kuwait) (Projects) |
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Date of Birth/Age : |
63 years |
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Qualification : |
M.E. (Structural Engineering) |
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Experience : |
37 years |
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Date of Appointment : |
14.10.1994 |
|
Previous
Employment |
Sadah General Trading and Construction Company, Kuwait – Executive
Director |
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|
Name : |
Mr. Kiran S. Divi |
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Designation : |
Director (Business Development) |
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Date of Birth/Age : |
31 years |
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Qualification : |
B. Pharm. |
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Experience : |
05 year |
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Date of Appointment : |
10.08.2001 |
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Name : |
Dr. K.
Satyanarayana |
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Designation : |
Non Executive Director |
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|
Name : |
Mr. G. Venkata
Rao |
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Designation : |
Non Executive Director |
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Name : |
Prof. C. Ayyana |
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Designation : |
Non Executive Director |
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Name : |
Mr. S. Vasudev |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. G. Suresh
Kumar |
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Designation : |
Non Executive Director |
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Name : |
Dr. P. Gundu Rao |
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Designation : |
Director [R & D] |
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Date of Birth/Age : |
72 years |
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Qualification : |
M. Pharm., Ph.D. |
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Experience : |
50 years |
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Date of Appointment : |
10.02.1995 |
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Previous
Employment |
College of Pharmacy, Manipal – Principal |
KEY EXECUTIVES
|
Name : |
Mr. L. Kishore Babu |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
55 years |
|
Qualification : |
B.Com, FICWA |
|
Experience : |
33 years |
|
Date of Appointment : |
01.03.1995 |
|
Previous
Employment |
Nagarjuna Fertilizers and Chemicals Limited - Finance Manager |
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Name : |
Mr. A. Narendra |
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Designation : |
Company Secretary |
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Name : |
Mr. Vara Prasad |
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Designation : |
Purchasing Manager |
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Name : |
Mr. Chandra S. Divi |
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Designation : |
General Manager |
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Date of Birth/Age : |
39 Years |
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Qualification : |
B. E. |
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Experience : |
13 Years |
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Date of Appointment : |
19.10.1994 |
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Name : |
Mr. Devendra Rao S. |
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Designation : |
General Manager |
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Date of Birth/Age : |
45 Years |
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Qualification : |
M. Sc. |
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Experience : |
23 Years |
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Date of Appointment : |
10.02.1995 |
|
Previous
Employment |
Natco Pharma Limited – Senior Manager [Production] |
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Name : |
Mr. Hemanth Kumar C |
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Designation : |
General Manager |
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Date of Birth/Age : |
47 Years |
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Qualification : |
M. Sc. |
|
Experience : |
23 Years |
|
Previous
Employment |
Senior Production manager – Sumitra Pharma Limited |
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Name : |
Dr. Nageswara Rao B. |
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Designation : |
General Manager |
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Name : |
Mr. Prasad, Y.TS. |
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Designation : |
General Manager |
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Name : |
Mr. Rajeswara Rao K. |
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Designation : |
General Manager |
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Name : |
Mr. Ramakrishna S. |
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Designation : |
General Manager |
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Name : |
Mr. Ramaiah Chowdary R |
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Designation : |
General Manager |
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Name : |
Mr. Ramesh Babu M. |
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Designation : |
Chief Technologist |
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Name : |
Dr. Rao M.NA |
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Designation : |
General Manager |
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Name : |
Mr. Srinivasa Rao R |
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Designation : |
Chief Technologist |
MAGOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
From 31.03.2008
|
Category of
Shareholders |
Number Number Of Shares |
Percentage of
Holding |
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Shareholding of
Promoter and Promoter Group |
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Indian |
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Individuals / Hindu Undivided Family |
32559500 |
50.44 |
|
|
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Bodies Corporate |
2000000 |
3.10 |
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|
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Bodies Corporate |
2000000 |
3.10 |
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Foreign |
|
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Individuals (NRIs / Foreign Individuals) |
25000 |
0.04 |
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Public
Shareholding |
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Institutions |
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Mutual Funds / UTI |
8965682 |
13.89 |
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Financial Institutions / Banks |
32942 |
0.05 |
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Foreign Institutional Investors |
10080548 |
15.61 |
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Non-institutions |
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Bodies Corporate |
3070296 |
4.76 |
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(b) Individuals |
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i) Individual
shareholders holding nominal share capital up to Rs. 0.100 Million |
6003378 |
9.30 |
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ii) Individual
shareholders holding nominal share capital in excess of Rs. 0.100 Million |
591605 |
0.92 |
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(c) Others - i) Non Resident Indians |
839814 |
1.30 |
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ii) Directors not in control of the Company |
278035 |
0.43 |
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iii) Trusts |
82155 |
0.13 |
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iv) Clearing Members |
28145 |
0.04 |
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Total |
64557100 |
100 |
NOTE 1: Directors
included in the Category of 'Public Shareholding-Others' are not having control
over the company.
NOTE 2: 10945362 equity
shares, being held by NRI-Promoters, FIIs and NRIs aggregating to 16.95% of
total share capital of the company.
Statement showing shareholding of persons belonging to the category
“Promoter and Promoter Group”
|
Sr. No. |
Name of the shareholder |
Number of the
shares |
Share of the
percentage of total number of shares |
|
|
INDIAN INDIVIDUALS: |
|
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1 |
Dr. Murali Krishna Prasad Divi |
25391750 |
39.33 |
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2 |
Ms. Swarna Latha Divi |
3500000 |
5.42 |
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3 |
Mr. Karan Satchandra Divi |
3500000 |
5.42 |
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|
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4 |
Mr. Madhusudhana Rao Divi |
154500 |
0.24 |
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5 |
Mr. Divi Babu Rajendra Prasad |
7000 |
0.01 |
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|
|
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6 |
Ms. P Jansilakshmi |
5250 |
0.01 |
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|
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7 |
Mr. Radhakrishna Rao Divi |
750 |
0.00 |
|
|
|
|
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8 |
Mr. Sudhakar Potlura |
250 |
0.00 |
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|
|
|
|
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Sub-total |
32559500 |
|
|
|
|
|
|
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BORIES CORPORATE: |
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1 |
M/s. Divis Biotech Private Limited |
2000000 |
3.10 |
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|
|
|
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Sub-total |
25000 |
|
|
|
|
|
|
|
|
GRAND TOTAL |
34584500 |
53.57 |
Public and holding more than 1% of the total number of share
|
Sr. No. |
Name of the shareholder |
No. of the shares |
Share of the percentage of the number of the share |
|
1 |
RELIANCE CAPITAL TRUSTEE CLOSELY HELD PUBLIC
LIMITED LIABILITY COMPANY |
5258823 |
8.15 |
|
|
|
|
|
|
2 |
HDFC TRUSTEE COMPANY LIMITED |
2853277 |
4.42 |
|
|
|
|
|
|
3 |
MERRILL LYNCH CAPITAL MARKETS ESPANA
S.A.S.V. |
2800170 |
4.34 |
|
|
|
|
|
|
4 |
OPPENHEIMER FUNDS INC. A/C OPPENHEIMER
DEVELOPING MARKET FUND |
2657178 |
4.12 |
|
|
|
|
|
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5 |
SANDSTONE CAPITAL INDIA MASTER FUND LIMITED |
1569015 |
2.43 |
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|
|
|
|
6 |
M3 INVESTMENT PRIVATE LIMITED LIABILITY
COMPANY |
674527 |
1.04 |
|
|
|
|
|
|
|
TOTAL |
15812990 |
24.49 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of generic APIs, custom synthesis of active ingredients and
intermediates for innovator companies and other speciality chemicals like
peptide building blocks and Nutraceuticals. |
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Products : |
v
Dimethylmethoxybenzylpyridinethylenediamine
for pharmaceuticals v
Diphenylthiourea
for pharmaceuticals v
Gentisic
acid/2, 5-dihydroxybenzoic acid and derivatives v
Herparin and
derivatives v
Narceine v
Safflower
oil (carthamus) v
Tryptophan/ amino
indolpropionic and acid v
Tyrosine v
Diaphoretics
|
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Exports : |
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Countries : |
Europe, United
States, UK, Switzerland, Canada, USA, Mexico and Germany |
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Imports : |
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Countries : |
Germany |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Active Pharma Ingredients and Intermediates |
MTs |
|
3500.00 |
2056.50 |
GENERAL
INFORMATION
|
No. of Employees : |
300 |
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Bankers : |
v State Bank of India, Overseas Branch,
ABIDS, Hyderabad, Andhra Pradesh v
State Bank
of Hyderabad, IFC Branch, Panjagutta, Hyderabad, Andhra Pradesh v
The Lakshmi
Vilas Bank Limited, K. P. H. B. Colony, Kukatpally, Hyderabad, Andhra Pradesh v
Industrial
Development Bank of India, Hyderabad, Andhra Pradesh v
IDBI Bank
Limited, Hyderabad, Andhra Pradesh v
UTI Bank
Limited, Hyderabad, Andhra Pradesh v
Bank of Nova
Scotia |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
|
|
Name : |
P.V.R.K. Nageswara Rao & Company Chartered Accountants |
|
Address : |
109, Metro Residency, 6-3-1247, Rajbhavan Road Hyderabad - 500 082 |
|
|
|
|
Associates : |
Cheminor Drugs
Limited |
|
|
|
|
Subsidiaries : |
v Divis
Laboratories (USA) Inc., New Jersey, USA v Div’s
Laboratories Europe AG Basel, Switzerland |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs 10/- each |
Rs. 150.000 millions |
|
500000 |
Redeemable Preference Shares |
Rs. 100/-
each |
Rs. 50.000 millions |
|
|
Total |
|
Rs. 200.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13000000 |
Equity Shares |
Rs 10/- each |
Rs. 130.000 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,29,11,420 |
Equity Shares |
Rs 10/- each |
Rs. 129.114 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
129.114 |
128.187 |
128.187 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5291.337 |
3279.978 |
2708.412 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5420.451 |
3408.165 |
2836.599 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1508.093 |
1458.406 |
628.796 |
|
|
2] Unsecured Loans |
31.465 |
43.394 |
32.108 |
|
|
TOTAL BORROWING |
1539.558 |
1501.800 |
660.904 |
|
|
DEFERRED TAX LIABILITIES |
295.313 |
281.639 |
250.323 |
|
|
|
|
|
|
|
|
TOTAL |
7255.322 |
5191.604 |
3747.826 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3811.919 |
2147.738 |
1815.439 |
|
|
Capital work-in-progress |
250.256 |
602.708 |
4.157 |
|
|
Unallocated Expenditure pending capitalization |
7.195 |
39.677 |
0.000 |
|
|
Advance for Capital Works |
125.020 |
160.346 |
6.727 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.836 |
3.975 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2100.458
|
1838.588
|
1390.488
|
|
|
Sundry Debtors |
1644.614
|
1074.422
|
1021.692
|
|
|
Cash & Bank Balances |
172.210
|
101.471
|
44.878
|
|
|
Other Current Assets |
2.060
|
1.799
|
1.371
|
|
|
Loans & Advances |
394.454
|
530.072
|
258.222
|
|
Total Current Assets |
4313.796
|
3546.352
|
2716.651
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1239.349
|
1151.630
|
678.216
|
|
|
Provisions |
19.351
|
157.562
|
116.932
|
|
Total Current Liabilities |
1258.700
|
1309.192
|
795.148
|
|
|
Net Current Assets |
3055.096
|
2237.160
|
1921.503
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7255.322 |
5191.604 |
3747.826 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
7244.245 |
3811.107 |
3473.783 |
|
|
Other Income |
136.083 |
106.248 |
171.465 |
|
|
Total Income |
7380.328 |
3917.355 |
3645.248 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2267.037 |
1069.112 |
1023.142 |
|
|
Provision for Taxation |
349.587 |
364.398 |
362.830 |
|
|
Profit/(Loss) After Tax |
1917.450 |
704.714 |
660.312 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
6712.078 |
3347.954 |
3015.919 |
|
|
Other Earnings |
30.448 |
35.855 |
66.042 |
|
Total Earnings |
6742.526 |
3383.809 |
3081.961 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1579.506 |
1074.601 |
640.371 |
|
|
Stores & Spares |
0.796 |
7.665 |
3.436 |
|
|
Capital Goods |
128.521 |
14.426 |
35.641 |
|
Total Imports |
1708.823 |
1096.692 |
679.448 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
438.098 |
331.726 |
327.414 |
|
|
Raw Material Consumed |
3230.992 |
1698.161 |
1583.826 |
|
|
Salaries, Wages, Bonus, etc. |
515.751 |
181.987 |
150.963 |
|
|
Finance Charges |
105.739 |
55.832 |
42.989 |
|
|
Depreciation & Amortization |
223.286 |
148.159 |
150.668 |
|
|
Other Expenditure |
599.425 |
432.378 |
365.246 |
|
Total Expenditure |
5113.291 |
2848.243 |
2621.106 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
|
Sales Turnover |
2280.700
|
2425.100
|
2842.200 |
2783.900 |
|
Other Income |
34.400
|
15.400
|
45.100 |
41.200 |
|
Total Income |
2315.100
|
2440.500
|
2887.300 |
2825.100 |
|
Total Expediture |
1438.100
|
1375.000
|
1721.300 |
1628.400 |
|
Operating Profit |
877.000
|
1065.500
|
1166.000 |
1196.700 |
|
Interest |
33.700
|
31.500
|
18.300 |
18.300 |
|
Gross Profit |
843.300
|
1034.000
|
1147.700 |
1178.400 |
|
Depreciation |
86.100
|
78.200
|
90.600 |
101.600 |
|
Tax |
48.900
|
01.000
|
61.700 |
80.700 |
|
Reported PAT |
672.800
|
912.500
|
1006.600 |
943.700 |
.
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.34 |
0.35 |
0.26 |
|
Long Term Debt-Equity Ratio |
0.17 |
0.10 |
0.02 |
|
Current Ratio |
1.68 |
1.50 |
1.53 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.84 |
1.39 |
1.47 |
|
Inventory |
3.71 |
2.39 |
2.85 |
|
Debtors |
5.37 |
3.68 |
3.72 |
|
Interest Cover Ratio |
22.45 |
20.16 |
24.79 |
|
Operating Profit Margin(%) |
35.58 |
33.02 |
34.64 |
|
Profit Before Interest And Tax Margin(%) |
32.52 |
29.17 |
30.35 |
|
Cash Profit Margin(%) |
29.34 |
22.12 |
23.09 |
|
Adjusted Net Profit Margin(%) |
26.28 |
18.28 |
18.80 |
|
Return On Capital Employed(%) |
39.98 |
26.76 |
33.06 |
|
Return On Net Worth(%) |
43.44 |
22.57 |
25.75 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was established in 1990 as a Research & Development company
to develop processes for API & Intermediates and to provide turnkey
solutions to the industry. In 1994 the name of the company was changed to Divi's
Laboratories Limited. The company is headed by Murali K Divi as Chairman &
Managing Director. In 1995, the company's first manufacturing unit was built on
a 300 acre site comprising of 11 multi-purpose production blocks.
The company's plant at Choutuppal Mandal, Nalgonda District is having 11
multi-purpose production blocks primarily manufacturing active pharmaceutical
ingredients and intermediates for generics, advanced intermediates for
discovery compounds, cartenoids, protecting agents and building blocks for
peptide chemistry and nucleotide chemistry.
During 1991 the company successfully developed commercial processes for
intermediates and bulk actions & supply to manufacturing enterprises. In
2000 the company was awarded ISO 9001 certification by SGS-Yarsley.
The Company product portfolio has about 90 products covering Generic Products
and New Chemistries comprising Custom Synthesis of APIs & Intermediates for
MNC, Peptide Building Overseas and Carotenoids etc. The company is the first company
to develop and manufacture synthetic carotenoids and also the largest
manufacturer of some peptide reagents and protected amino acids
world-wide.
The company has taken up a development of a new site in 2002 at Chippada
village 35 KM from Visakhapatnam. The commercial production is slated to
commence by March 2003. The total estimated outlay on this facility was
Rs.402.200 Millions. The above plant will not only increase the capacity of API
and also provide comfort to the company's multinational customers for assured
supply of products.
The company is coming out with an IPO through book building route and the offer
size is 3.205 Millions equity shares of Rs.10 each comprising fresh issue of
1.270 Millions shares and an offer for sale of 1.935 Millions shares. The
floor price has been fixed at Rs.130 per share and the issue is open from
February 17,2003 to February 21,2003. After the public issue the total equity
has increased to Rs.128.200 Millions from Rs 115.500 Millions
The company has increased its installed capacity of Active Pharma Ingredients
& Intermediates by 200 MTs and with this expansion the total installed
capacity of Active Pharma Ingredients & Intermediates has increased to 2000
MTs.
The company has invested an amount of Rs.303.521 Millions towards capital
expenditure at its manufacturing facilities at Choutuppal (Unit-I) and Chippada
(Unit-II) for additional machinery installed at both Unit-I and Unit-II for
enhancing he production capacity. Further the company has commissioned a new
pilot plant at Unit-2 and also a new Research Centre with 60 work stations,
which became fully operational during the year. The company has also installed
additional Laboratory instruments at the Research centres.
The company is in the process of setting up an Export Oriented Unit with a
capital investment of Rs.350 millions at its Unit-2.
PERFORMANCE
AND OPERATIONS REVIEW
During the year, Divi's achieved a turnover of Rs.7244.200 Millions as against
Rs. 3811.100 Millions during the previous year reflecting a growth of 90%. As
has been the norm for the company, exports constituted 93% of total turnover
and exports to advanced markets comprising Europe and America accounted for 75%
of business. Other Income earned during the year stood at Rs.136.100 Millions
as against Rs. 106.200 Millions in the previous year. Expenses for the year
included a charge of Rs.241.100 Millions on account of stock options granted to
employees. Profit after Tax (PAT) grew by about 172% to Rs.1917.400 Millions as
against Rs. 704.700 Millions during the previous year.
Earnings Per Share for the year works out to Rs.149.54 per share as against Rs.
54.98 last year on absolute basis and to Rs.147.77 per share as against Rs.
53.94 last year on diluted basis.
They could achieve this substantial growth due to the continued pursuit of
their strategy to work with multi-national innovator companies developing
compounds under custom synthesis besides a strategic positioning on their range
of generic products in international domain duly supported by their capital
expenditure programs.
The newly commissioned SEZ Unit has also contributed to business during the
year. This structure is able to provide a convenient mechanism for big pharma
companies for sourcing their custom compounds, as it is an efficient platform
for international business. Investments made during the year, with
multi-purpose capacities created supporting improved safety and environment
management capabilities, are able to attract greater business in custom
synthesis business. Divi's is now recognised as a strategic long term supplier
by some of the leading innovator companies. This would ensure a continuing flow
of opportunities to Divi's. The strategic size reached in some of the generic
APIs has made Divi's a supplier of choice for major customers including branded
generic manufacturers, which ensures business from these customers on a long
term basis. With the marketing arms in place in Europe and USA, they will be
able to have a wider reach in the advanced markets, meet supply chain
requirements of customers in these markets and enhance their business.
CHANGES
IN SHARE CAPITAL
The company has allotted 92720 equity shares during the year at the par value
of Rs. 10/- each to employees upon exercise of options under its Employee stock
option scheme. Consequently, the paid up capital of the company as on 31st
March, 2007, stands increased by Rs. 0.900 Millions to Rs.129.100 Millions. The
new shares rank pari passu in all respects with the existing equity shares of
the company. Approval has been obtained from NSE and BSE for listing of the new
shares on the stock exchanges.
SUBSIDIARIES
The company incorporated, during late last year, two 100% subsidiaries viz.,
M/s. Divis Laboratories (USA) Inc., in USA and M/s. Divi's Laboratories Europe
AG in Switzerland for marketing its products and a greater reach to customers
within these regions. The low level of operations of the subsidiaries during
the year resulted in net loss, mainly a result of salaries and administrative
expenses. The subsidiaries would undertake full scale marketing operations with
the ensuing commencement of commercial operations of the nutraceutics
project.
Management Discussion and
Analysis
Overview
The financial statements have been prepared in compliance with the requirements
of the Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP)
in India. The management of Divi's Laboratories accepts responsibility for the
integrity and objectivity of these financial statements as well as for various
estimates and judgments used therein.
These
estimates and judgments relating to the financial statements have been made on
a prudent and reasonable basis, in order that the statements reflect, in a true
and fair manner, the state of affairs and profits for the year. This report may
also contain certain statements that the company believes are or may be
considered to be forward looking statements' which are subject to certain risks
and uncertainties.
Industry and structure
The
company is engaged in manufacture of generic APIs, custom synthesis of active
ingredients and intermediates for innovator companies and other speciality
chemicals like peptide building blocks and Nutraceuticals.
During
2006, the global pharmaceutical market grew by 7% to US $643 billion which
includes prescription and OTC drugs. US market accounts for a little over 50%
of the total market. The component for the Active Pharmaceutical Ingredients
business (API) is estimated about 5 to 7% of the pharma market i.e, between US
$ 32 to 45 billion. The US generic market, which represents over 50% of the
global revenues, is witnessing increased pressures about rising healthcare
costs. This market stands amongst the highest in terms of healthcare spends
compared to other countries.
Over
the last 3 decades, the Indian pharmaceutical industry has gained considerable
expertise and skills in handling complex chemical reactions and manufacture
under cGMP conditions and now ranks fourth globally in terms of output volume
and thirteenth in value terms. The onset of full compliance to patent regime in
place in India effective 2005, and with the cost-competitive structure and
intricate chemistry handling capabilities that Indian companies have demonstrated,
there will be a more conducive atmosphere for outsourcing by big pharma
companies resulting in major opportunities to Indian pharma companies committed
to intellectual property rights (IPR) and playing a complementary role to the
innovators.
Company infrastructure
Divi's
operates from its Headquarters and Registered Office at Hyderabad.
The
company has three manufacturing facilities:
* The
1st Facility at village Lingojigudem, Choutuppal Mandal, Nalgonda district,
about 60 KM from Hyderabad.
* The 2nd Facility has been converted during the year as an Export Oriented
Unit at village Chippada, Bheemunipatnam Mandal, Visakhapatnam Dist. about 30
KM from the Port City of Visakhapatnam on the east coast.
* The 3rd facility is an SEZ Unit at village Chippada, Bheemunipatnam Mandal,
Visakhapatnam Dist., which was commissioned and commenced commercial operations
during the year.
The
company has 4 Research Centers with well defined functional focus on custom
synthesis, contract research for MNC companies as also future generics
involving processes like route design, route selection, establishing gram scale
process and structural confirmation, process optimization, impurity profile,
pilot studies, pre-validation batches, validation of process and transfer of
technology to Plant and review efficiency of processes.
Milestones
2003
The company receives Certificate of Substantiability from the council of
European Countries.
Appointed Mr. A. Narendra as Company Secretary and compliance officer of
the company (in place of outgoing Company Secretary Mr. M. P. Sudarshan) who
has joined the organisation.
2004
The company has informed that the manufacturing facility of company
choutuppal near Hyderabad was successfully inspected by US-FDA in May 2001.
Achievements
v
It has grown multi-fold from the time of its inception.
v
It has been the recipient of prestigious awards over the past years.
v
IDMA 1996 (Indian Drug Manufacturers Association) For Excellence in
Quality
v
It had been inspected by USFDA in September, 2000
v
ISO 14001 Certified in the year 2000
v
ISO 9001 Certified in the year
1998
v
The Director General of Foreign Trade rated the company first among the
top 10 exporters from Andhra Pradesh in the year 1996-97.
v
FAPCCI 1997 (Federation of Andhra Pradesh Chambers of Commerce &
Industry) (For Best Export Effort in the State of Andhra Pradesh)
v
FAPCCI 1996 (Federation of Andhra Pradesh Chambers of Commerce &
Industry) (For Best Technological Development in Research & Development by
an Industrial / Scientific Organisation)
v
ICMA 1996 (Indian Chemical Manufacturers Association) (For Achieving
Outstanding Quantum of Exports)
v
IDMA 1996 (Indian Drug Manufacturers Association) (For Excellence in
Quality)
The company is in trade terms with :
v
Atofina
v
La Defence 10, Cedex 42, 92091, Paris, La Defence, France
v
Bayer AG
v
Ch-M/GF 30, D-51368 Leverkusen Bayerwerk, Germany
v
DSM Fine Chemicals Austria GmbH
v
St. Peter Strabe 25, P. O. Box 296, A-4021, Linz, Austria
v
Great Lakes Sales (Europe) GmbH
v
Juchstrabe 45, Ch-8501, Frauenfeld, Switzerland
v
Hawk Petroleum Pte Limited
v
Level 36, Hong Leong Building, 16, Raffles Quay, Singapore 048581
v
Nagase & Company Limited
v
5-1, Nihonbashi, Kobunacho, Chou-Ku, Tokyo 103, Japan
v
Rohm & Hass B.V.
v
P. B. 32, NL 3800 AA Amersfoort, The Netherlands
v
Saurefbrik Schweizerhall (Switz)
v
Ch-4133 Prattein 1, Switzerland
v
SQM Europe N.V.
v
Sint Pietersvlier 7, Bus 8, Precambuilfing 2000, Antwerpen 1, Belgium
v
Sinochem Jiangsu Imp. & Exp. Corporation
v
50 Zhonghua Road, Nanjing, China
Subject has been accredited with ISO 9001 and ISO 14001 Certifications.
Fixed Assets
v
Land and
development
v
Buildings
v
Plant &
machinery
v
Laboratory
equipments
v
Furniture and
fixtures
v
Data
processing equipments
v
Vehicles
Website Details :
Established in the year 1990, with Research & Development as its
prime fundamental, Divis Laboratories focussed on developing new processes for
the production of Active Pharma Ingredients (APIs) & Intermediates. The
company in a matter of short time expanded its breadth of operations to provide
complete turnkey solutions to the domestic Indian pharmaceutical industry.
With five years of experience, expertise and a proven track-record of helping
many companies with its turn-key and consulting strengths, Divis Laboratories
established its first manufacturing facility in 1995.
Built on a 300 acre site at Hyderabad (Unit-I). The plant comprises of 13
multi-purpose production blocks and has space for further growth and expansion.
Divis Laboratories set up its second manufacturing facility at Visakhapatnam
(Unit-II). in the year 2002 on a314 acre site. The site has 7 multi purpose
production blocks.
Both the facilities are primarily engaged in the manufacture
of:
v Active
Pharmaceutical Ingredients (APIs) & Intermediates for Generics
v Custom Synthesis
of API's and Advanced intermediates for discovery compounds for pharma giants
v Building blocks
for Peptides
v Building blocks
for Nucleotides
v Carotenoids
v Chiral ligands
Complete cGMP guidelines are complied with in both the plants. The
Unit-1 at Hyderabad was successfully inspected by the US FDA during September
2000 and again in April 2004. The Unit-2 at Visakhapatnam was successfully
inspected by the US FDA during November 2006. Divis also undertakes
FTE/Contract Research on process development for discovering new compounds for
leading MNCs across the world and partners with them for the supply of APIs.
The company is global in its outlook and benchmarks its quality standards to
the best in the world.
Press clipping
Divi’s Labs PAT for Q1 grows by 153% to Rs. 650
Millions
Divi’s
Laboratories has earned a PAT of Rs. 650 Millions on a consolidated basis for
the quarter ending 30th June, 2007. Total income grew by 39% to Rs.2300
Millions. An amount of Rs.20 Millions has been charged as expense during the
year on account of Stock options. For the first quarter of last year, it earned
a PAT of Rs.260 Millions on a total income of Rs. 1650 Millions during the last
year.
Divi’s Labs Q3
total income grows by 38% to Rs.1520 millions
Divi’s Laboratories has clocked a total income of Rs.1520 millions and a
PAT of Rs.310 millions on a consolidated basis for the 3rd Quarter ending 31st
December, 2006. Income and PAT for the corresponding previous quarter during
last year were Rs. 1100 millions and Rs.190 millions respectively. While income
grew by 38%, PAT grew by 66%.
Results of the current quarter include operations from the SEZ Unit at
Chippada, Bheemunipatnam. During the quarter, the company had a successful
inspection by the US-FDA for its EOU and SEZ Units, and a Drug Master file was
also filed with USFDA for a generic product.
For the current 9-month period, Divi’s earned a total income of Rs.4820
millions and a PAT of Rs. 870 millions as against an income of Rs.262 millions
and a PAT of Rs.480 millions during the corresponding previous period. Growth
in total income for the period is 84% while the growth in PAT is 81%. An amount
of Rs.180 millions has been charged as expense during the current 9-month
period on account of Stock options.
Divi’s Laboratories is glad to announce that it has had a successful
inspection by the US – FDA, without any observations, for its Unit 2
(comprising both EOU and SEZ Units) at village Chippada, Bheemunipatnam Mandal
near Visakhapatnam during this month. The purpose of this inspection was for
product pre approvals and general cGMP (Current Good Manufacturing Practices).
Divi`s gets commerce ministry's nod for special SEZ
May 24, 2006
Hyderabad-based Divi’s Laboratories Limited has informed that the
company has received letter of approval from Ministry of Commerce, Government
of India, for setting up a sector-specific special economic zone (SEZ) for
pharmaceutical ingredients at Chippada, Bheemunipatnam in Visakhapatnam.
The pharmaceutical company will be investing around Rs 2000 million for
this purpose.
Speaking to Business Standard, Kishore Babu, chief financial officer of Divi’s
Laboratories, said, “We will be investing Rs 1200 million initially and later
invest Rs 800 million. The total investment for the 250-acre SEZ will be spread
over four years.”
The company will be raising funds for the investment via foreign currency
loan.
“This will involve a debt of around $15 million. The remaining
investment will be via internal accruals,” Babu said.
Divi's
gets nod for pharma SEZ
Hyderabad, May 23
Divi's Laboratories Limited has informed the stock exchanges that it has
received a letter of approval from the Union Ministry of Commerce for setting
up and development of a sector specific Special Economic Zone for
pharmaceutical ingredients at Chippada near Bheemunipatnam in Andhra Pradesh.
The details of land were notified in the Gazette of India on May 16, the
company said.
Divi’s Labs PAT for FY07 grows by 167% to Rs.1860
Millions
Divi’s
Laboratories has earned a PAT of Rs.1860 Millions on a consolidated basis for
the year ending 31st March, 2007. Total income grew by 88% to Rs.7380 Millions.
An amount of Rs.240 Millions has been charged as expense during the year on
account of Stock options. It earned a PAT of Rs.700 Millions and a total income
of Rs. 3920 Millions during the last year. Results for the year include operations
from the SEZ Unit at Chippada, Bheemunipatnam. During the year, the company had
a successful inspection by the US-FDA for its EOU and SEZ Units.
For the 4th
quarter, the PAT on a standalone basis grew substantially by 341% over the
corresponding previous quarter to Rs. 1010 Millions while the total income grew
by 97% to Rs.2560 Millions. Figures of PAT and Income for the previous were
Rs.220 Millions and Rs.1300 Millions respectively.
Board of Directors
of the Company have recommended split of Equity Shares from face value of Rs
10/- each to Rs 2/- each, subject to approval of members.
The company owes
the commendable growth in business due to the continued pursuit of its strategy
to work with multi-national innovator companies developing compounds under
custom synthesis besides a strategic positioning on its range of generic
products in international domain duly supported by capital expenditure
programs.
UN-AUDITED
FINANCIAL RESULTS
FOR THE QUARTER
ENDED 31ST DECEMBER, 2007
[Rs. In Millions]
|
|
Particulars |
Quarter ended 31.12.2007 |
Period ended 31.12.2007 |
|
|
|
Unaudited |
Unaudited |
|
1 |
Net Sales/Income from operations (Net of Excise Duty) |
2842.200 |
7548.000 |
|
2 |
Other Income |
45.100 |
94.900 |
|
3 |
Total Income: |
2887.300 |
7642.900 |
|
4 |
Expenditure: |
|
|
|
|
a. (Increase) / Decrease in Stockin- Trade and Work-in-Progress |
47.300 |
[226.800] |
|
|
b. Consumption of Raw Material |
1166.400 |
3326.000 |
|
|
c. Purchase of Traded Goods |
0.000 |
0.000 |
|
|
d. Staff Cost |
123.700 |
359.700 |
|
|
e. Depreciation |
90.600 |
254.900 |
|
|
f. Other Expenditure |
|
|
|
|
- Manufacturing Expenses |
180.500 |
488.000 |
|
|
- Other expenses |
203.400 |
587.500 |
|
|
Total |
1811.900 |
4789.300 |
|
5 |
Finance charges |
18.300 |
83.500 |
|
6 |
Exceptional items |
0.000 |
0.000 |
|
7 |
Profit from ordinary activities before Tax [3-4+5+6] |
1057.100 |
2770.100 |
|
8 |
Tax Expense |
|
|
|
|
- Current Tax (Refer to Note 3) |
60.700 |
109.700 |
|
|
- Deferred Tax |
[11.200] |
66.600 |
|
|
- Fringe Benefit Tax |
1.000 |
1.900 |
|
9 |
Net Profit from ordinary activities after Tax: (7-8) |
1006.600 |
2591.900 |
|
10 |
Extra-ordinary items (net of tax expense) |
0.000 |
0.000 |
|
11 |
Net Profit for the period (9-10) |
1006.600 |
2591.900 |
|
12 |
Paid-up Equity Share Capital (Face Value: Rs.2 each) |
129.100 |
129.100 |
|
13 |
Reserves excluding revaluation reserves |
|
|
|
|
Earnings per Share |
|
|
|
a) |
Basic Earnings Per Share before extra-ordinary items Rs. |
15.59 |
40.15 |
|
|
Diluted Earnings Per Share before extra-ordinary items Rs. |
15.41 |
39.69 |
|
b) |
Basic Earnings Per Share after extra-ordinary items Rs. |
15.59 |
40.15 |
|
|
Diluted Earnings Per Share after extra-ordinary items Rs. |
15.41 |
39.69 |
|
14 |
Aggregate of
public shareholding: |
|
|
|
|
- No. of shares |
29992600 |
29992600 |
|
|
- % of
shareholding |
46.46 % |
46.46 % |
NOTES:
1. The above
results for the quarter and period ended 31st December 2007, as reviewed by the
Audit Committee,
were considered
and approved by the Board of Directors at its meeting held on 28th January,
2008.
2. The Company is
primarily engaged in the manufacture of Active Pharmaceutical Ingredients and
intermediates. Accordingly there are no reportable segments as per Accounting
Standard 17 on Segment Reporting issued by the Institute of Chartered
Accountants of India.
3. Provision for
current tax for the period ended 31st December, 2007 is net of MAT Credit
entitlements of Rs.186.300 Millions.
4. The financial
results for the quarter and the period ended 31st December, 2007 have been
subjected to limited
review carried out
by the statutory auditors of the company.
5. The figures for
the previous year/period have been regrouped, wherever necessary.
6. Consolidated Financial Results of the company with its subsidiaries
M/s.Divis Laboratories (USA) Inc and M/s. Divi’s Laboratories Europe AG are
given below:
[Rs. In Millions]
|
|
Particulars |
Quarter ended 31.12.2007 |
Period ended 31.12.2007 |
|
1 |
Turnover |
2841.300 |
7546.900 |
|
2 |
Net Profit after tax |
990.600 |
2549.200 |
|
3 |
Earnings Per
Share |
|
|
|
|
(Face Value Rs.2
each) |
|
|
|
|
Basic: Rs. |
15.35 |
39.49 |
|
|
Diluted: Rs. |
15.17 |
39.03 |
7. Details of Investor complaints pursuant to Clause 41 of the Listing
Agreement for the quarter ended
31.12.2007:
Opening: Nil, Received during the Quarter: 21, Resolved: 21, Closing:
Nil
Divi’s Labs PAT for Q3 grows by 216% to Rs.990.000 millions.
Divi’s Laboratories has earned a PAT of Rs.990.000 millions on a consolidated basis for the 3rd quarter ending 31st December, 2007. Total income for the quarter grew by 90% to Rs.2890.000 millions. For the corresponding quarter for the last year, the company earned a PAT of Rs.310.000 millions on a total income of Rs.1520.000 millions.
For the 9 month period of the current year,
Divi’s earned a PAT of Rs.2250.000 millions on income of Rs.7640.000 millions
as against a PAT of Rs.870.000 millions and income of Rs.482.000 millions
during the corresponding period last year.
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.94 |
|
UK Pound |
1 |
Rs.85.78 |
|
Euro |
1 |
Rs.68.01 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|