MIRA
INFORM REPORT
|
Report Date : |
10.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
DIVI’S LABORATORIES LIMITED |
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|
|
|
Registered
Office : |
7-1-77/E/1/303, Dharam Karan Road, Amarpret, Hyderabad-500016, Andhra
Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
|
Date of
Incorporation : |
12.10.1990 |
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Com. Reg. No.: |
01-11854 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs.265.191
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110AP1990PLC011854 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDD00549D |
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|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchange. |
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|
|
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Line of Business
: |
Manufacturer of Active Pharma Ingredients (APIs) and Intermediates. |
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|
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No. of Employees
: |
100 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 73000000 |
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|
|
Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Directors are reported to be experienced an The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
7-1-77/E/1/303, |
|
Tel. No.: |
91-40-23731318/ 23731760 / 61 / 23786300 |
|
Fax No.: |
91-40-23733242 / 23786460 |
|
E-Mail : |
marketing@divislaboratories.com
chemicals@divislaboratories.com
|
|
Website : |
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Factory 1 : |
Choutuppal Unit Lingojigudem Village,
Choutuppal Mandal, Nalgonda-508252, Andhra Pradesh, India |
|
Tel. No.: |
91-8694-272092,
272260 |
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Fax No.: |
91-8694-272685 |
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|
|
|
Factory 2 : |
100% Export
Oriented Unit – Chippada Chippada Village,
Bheemunipatnam Mandal, Visakhapatnam-531162, Andhra Pradesh, India |
|
Tel. No.: |
91-8922-245166 |
|
Fax No.: |
91-8922-245165 |
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R and
D Centers: |
Located At: ·
Hyderabad ·
Nalgonda ·
Visakhapatnam |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. Murali K Divi |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
58 Years |
|
Qualification : |
M. Pharm. Ph.D. |
|
Date of Appointment : |
12.10.1990 |
|
|
|
|
Name : |
Mr. N V Ramana |
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Designation : |
Executive Director |
|
Date of Birth/Age : |
51 Years |
|
Qualification : |
B.Sc.(Chem) |
|
Date of Appointment : |
26.12.1994 |
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|
|
|
Name : |
Dr. P Gundu Rao |
|
Designation : |
Director (Research and Development)
|
|
Date of Birth/Age : |
74 Years |
|
Qualification : |
M. Pharm. Ph.D. |
|
Date of Appointment : |
10.02.1995 |
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|
|
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Name : |
Mr. C. Ayyanna |
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Designation : |
Non Executive Independent Director |
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|
Name : |
Mr. Kiran S. Divi |
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Designation : |
Executive Director [Business Development] |
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|
|
|
Name : |
Dr. G. Suresh Kumar |
|
Designation : |
Non Executive Independent Director |
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|
|
|
Name : |
Mr. G. Venkat Rao |
|
Designation : |
Non Executive Independent Director |
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|
Name : |
Mr. Madhusudana Rao Divi |
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Designation : |
Executive Director [Projects] |
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Name : |
Dr. K. Satyanarayana |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. S. Vasudev |
|
Designation : |
Non Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. P.V. Lakshmi Rajani |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. L. Kishore Babu |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
65,172,100 |
49.12 |
|
|
4,000,000 |
3.01 |
|
|
69,172,100 |
52.14 |
|
|
|
|
|
|
50,000 |
0.04 |
|
|
50,000 |
0.04 |
|
Total shareholding of Promoter and Promoter Group (A) |
69,222,100 |
52.17 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
21,962,515 |
16.55 |
|
|
530,136 |
0.40 |
|
|
14,476,726 |
10.91 |
|
|
36,969,377 |
27.86 |
|
|
|
|
|
|
13,328,571 |
10.05 |
|
|
|
|
|
|
9,667,081 |
7.29 |
|
|
1,512,524 |
1.14 |
|
|
1,976,897 |
1.49 |
|
|
1,117,896 |
0.84 |
|
|
731,460 |
0.55 |
|
|
1,005 |
- |
|
|
126,536 |
0.10 |
|
|
26,485,073 |
19.96 |
|
Total Public shareholding (B) |
63,454,450 |
47.83 |
|
Total (A)+(B) |
132,676,550 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
132,676,550 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Active Pharma Ingredients (APIs) and Intermediates. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Active Pharma Ingredients and Intermediates |
MTs |
4500 |
2595.39 |
Note: Net of captive consumption of 6421.08 MTs
(Previous year 3525.88 MTs)
GENERAL INFORMATION
|
No. of Employees : |
100 [Approximately] |
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Bankers : |
v State Bank of v State Bank of v The Lakshmi
Vilas Bank Limited v Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
P.V.R.K. Nageswara Rao and Company Chartered Accountants |
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Address : |
109, Metro Residency, 6-3-1247, |
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Subsidiaries : |
·
Divis Laboratories (USA) Inc. , New Jersey, USA ·
Divis Laboratories Europe Ag, Basel, Switzerland |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
132595110 |
Equity Shares |
Rs.2/- each |
Rs.265.191
Millions |
Note: Of the above
6,55,97,975 Equity Shares of Rs.2/- each have been allotted as Bonus Shares on
Capitalization of General Reserve and other free reserve.
As on 08.08.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300000000 |
Equity Shares |
Rs.2/- each |
Rs.600.000 Millions |
Issued, Subscribed & Paid-up Capital : Rs.265.353
Millions
|
No. of Shares |
Type |
Value |
Amount |
|
265353100 |
Equity Shares |
Rs.2/- each |
Rs.530.706
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
265.191 |
264.288 |
129.516 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18015.264 |
15156.463 |
12488.360 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
18280.455 |
15420.751 |
12617.876 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
201.611 |
298.465 |
495.200 |
|
|
2] Unsecured Loans |
28.846 |
30.024 |
31.198 |
|
|
TOTAL BORROWING |
230.457 |
328.489 |
526.398 |
|
|
DEFERRED TAX LIABILITIES |
549.119 |
519.050 |
485.652 |
|
|
|
|
|
|
|
|
TOTAL |
19060.031 |
16268.290 |
13629.926 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5897.286 |
5896.718 |
5896.707 |
|
|
Capital work-in-progress |
1037.158 |
203.908 |
144.294 |
|
|
Unallocated Expenditure pending capitalization |
6.199 |
0.000 |
0.000 |
|
|
Advances for Capital Works |
249.908 |
33.623 |
50.722 |
|
|
|
|
|
|
|
|
INVESTMENT |
5284.543 |
4418.586 |
1723.880 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5430.655
|
4795.727 |
3959.075 |
|
|
Sundry Debtors |
3949.539
|
2344.415 |
2834.995 |
|
|
Cash & Bank Balances |
127.998
|
128.687 |
128.677
|
|
|
Other Current Assets |
3.011
|
2.708 |
3.437
|
|
|
Loans & Advances |
1095.027
|
1040.572 |
993.278
|
|
Total
Current Assets |
10606.230
|
8312.109 |
7919.462 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2160.960
|
1575.547 |
1556.580 |
|
|
Other Current Liabilities |
242.284
|
56.868 |
59.450
|
|
|
Provisions |
1618.049
|
964.239 |
489.109
|
|
Total
Current Liabilities |
4021.293
|
2596.654 |
2105.139
|
|
|
Net Current Assets |
6584.937
|
5715.455 |
5814.323
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19060.031 |
16268.290 |
13629.926 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13054.386 |
9292.919 |
11905.602 |
|
|
|
Other Income |
386.044 |
306.868 |
230.144 |
|
|
|
TOTAL (A) |
13440.430 |
9599.787 |
12135.746 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
4866.797 |
3952.060 |
5426.465 |
|
|
|
Manufacturing Expenses |
1020.741 |
717.365 |
787.214 |
|
|
|
Research and Development Expenses |
159.809 |
112.830 |
0.000 |
|
|
|
Employee Benefits Expense |
804.848 |
684.625 |
619.192 |
|
|
|
Other Expenses |
897.140 |
699.772 |
1159.849 |
|
|
|
Increase / Decrease in Stocks |
345.229 |
(992.374) |
(990.864) |
|
|
|
TOTAL (B) |
8094.564 |
5174.278 |
7001.856 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5345.866 |
4425.509 |
5133.890 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
21.854 |
27.578 |
72.259 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5324.012 |
4397.931 |
5061.631 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
533.515 |
514.516 |
478.196 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4790.497 |
3883.415 |
4583.435 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
434.836 |
441.369 |
338.878 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4355.661 |
3442.046 |
4244.557 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
12146.806 |
10159.310 |
6800.508 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
1325.951 |
792.865 |
389.088 |
|
|
|
Corporate Dividend Tax |
215.103 |
131.685 |
66.204 |
|
|
|
General Reserve |
750.000 |
530.000 |
430.000 |
|
|
|
Difference in Final Dividend |
0.000 |
0.000 |
0.463 |
|
|
BALANCE CARRIED
TO THE B/S |
14211.413 |
12146.806 |
10159.310 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
11811.894 |
8353.953 |
11033.547 |
|
|
|
Contract Research Fee |
23.840 |
61.205 |
23.572 |
|
|
|
Interest |
0.000 |
13.264 |
7.436 |
|
|
|
Others |
0.000 |
1.216 |
3.742 |
|
|
TOTAL EARNINGS |
11835.734 |
8429.638 |
11068.297 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2369.903 |
1293.558 |
2470.466 |
|
|
|
Stores & Spares |
17.929 |
7.720 |
10.476 |
|
|
|
Capital Goods |
122.366 |
9.223 |
73.506 |
|
|
TOTAL IMPORTS |
2510.198 |
1310.501 |
2554.448 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) [Basic] |
32.90 |
26.40 |
32.79 |
|
|
|
Earnings Per
Share (Rs.) [Diluted] |
32.88 |
26.35 |
32.46 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3648.100 |
3660.600 |
|
Total Expenditure |
|
2308.100 |
2278.700 |
|
PBIDT (Excl OI) |
|
1340.000 |
1381.900 |
|
Other Income |
|
101.500 |
107.600 |
|
Operating Profit |
|
1441.500 |
1489.500 |
|
Interest |
|
2.200 |
5.900 |
|
PBDT |
|
1439.300 |
1483.600 |
|
Depreciation |
|
140.000 |
152.000 |
|
Profit Before Tax |
|
1299.300 |
1331.600 |
|
Tax |
|
273.400 |
271.100 |
|
Profit After Tax |
|
1025.900 |
1060.500 |
|
Net Profit |
|
1025.900 |
1060.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
32.40
|
35.85 |
34.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
36.70
|
41.79 |
38.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
29.02
|
27.33 |
33.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.25 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.23
|
0.19 |
0.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.64
|
3.20 |
3.76 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject, an Active Pharma Ingredients (APIs) and Intermediates company
was incorporated in the year 1990. Subject prime fundamental is Research and Development
and focused on developing new processes for the production of Active Pharma
Ingredients (APIs) and Intermediates. The company provides complete turnkey
solutions to the domestic Indian pharmaceutical industry. In the year 1994 the
name of the company was changed to Divi's Laboratories Limited. Subject is the
largest manufacturer of some peptide reagents and protected amino acids
worldwide. The product group of the company includes Generics, Intermediates,
Protected Amino Acids, Chiral Synthesis and Carotenoids.
During the year 1991, the company successfully developed commercial processes
for intermediates and bulk actions and supply to manufacturing enterprises.
Subject production experience goes back to few years only; the company
established its first manufacturing facility in the year 1995 at
Complete cGMP guidelines are complied with in both the plants. The US FDA
successfully inspected the Unit-1 at
The US FDA again inspected the Unit-1 at
The company has received letter of approval from Ministry of Commerce,
Government of India in the year 2006, for setting up a sector-specific special
economic zone (SEZ) for pharmaceutical ingredients at Chippada, Bheemunipatnam
in Visakhapatnam with investment of Rs.2000 Millions. The US FDA successfully
inspected the Unit-2 at
During the year 2006-07, the company has spent an amount of Rs.2308.400
Millions on capital expenditure (net of capital work-in-progress) towards
enhancing production capacities. And also has developed an SEZ titled Divi's
Pharma SEZ' on a 250-acre site at village Chippada, Bheemunipatnam Mandal,
Visakhapatnam Dist. Subject has had a successful inspection by the US-FDA,
without any observations, for its unit-1 at vill. Lingojigudem, Choutuppal
Mandal near
The company is the first to develop and manufacture synthetic carotenoids.
Subject wants to maintain leadership in custom synthesis of APIs and Intermediates
for health care and life sciences industry so far and to be one of the top
companies worldwide in the domain. To develop generic APIs for the late life
cycle needs of the Industry. With this, also Subject intend to serve the
community at large through social, educational and environmental initiatives
that would establish strong foundations for a better tomorrow.
FINANCIAL RESULTS
During the year,
Subject achieved a turnover of Rs.13050.000 Millions as against Rs.9290.000
Millions during the previous year resulting in a growth of 41%. Exports
constituted 93% of total turnover as against 91% during the last year. Profit
after Tax (PAT) for the year amounted to Rs.4360.000 Millions as against Rs.
3440.000 Millions during the last year, a growth of 27%. Business has grown
satisfactorily across all the segments, especially during the second half. The
issue of destocking of inventory at their customers seen during the last year
is done with and they see normal flow of business across the product portfolio
of the company.
SUBSIDIARIES
The company has
two wholly owned subsidiaries viz., Divis Laboratories (USA) Inc., in USA and
Divi’s Laboratories Europe AG in Switzerland for marketing its nutraceutical
products and a greater reach to customers within these regions. While loss for
current year at Divis Laboratories (USA) is Rs.6.300 Millions, the loss at
Divi’s Laboratories Europe is Rs.56.600 Millions.
Auditors of these
subsidiaries have observed that they have negative networth and suffer from
deficiency of cash for continuing operations as a going-concern without the
support of the parent. The losses in the subsidiaries are on account of low
level of operations at the subsidiaries. With the expected increase in the
level of operations, the subsidiaries would be getting into cash profits
shortly.
During the year,
they have enhanced the equity capital in Divis Laboratories (USA) Inc., by
converting Rs.22.300 Millions from out of the loans given to the subsidiary
into equity capital. They would also be increasing the equity capital of Divi’s
Laboratories Europe AG during the next fiscal.
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 Subject 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 value of the
global pharmaceutical market is expected to grow 5-7 percent in 2011, to US$880
billion, compared with a 4-5 percent pace this year, according to IMS Health.
IMS expect the pharmerging markets to continue their rapid expansion next year
and remain strong sources of growth, and also see the potential for several
significant innovative treatment options that are becoming available for
patients. Divergent growth rates are expected for developed and pharmerging
markets. As countries recover from the global economic crisis at different
rates, there is growing divergence in the pace of pharmaceutical growth among
major markets.
IMS Health is
predicting that emerging markets will expand by $90 billion during 2009-13,
contributing about 48% of annual pharmaceutical market growth in 2013. This
comes at a time when the global multinational pharma firms are looking to these
markets - with their rising GDPs, expanding access to healthcare and improving
intellectual property and regulatory regimes - to fill the revenue gap felt in
mature markets. By 2011, IMS expects the eight emerging markets will have taken
their place in the top 20 pharma world rankings.
In the emerging
global competitive environment, the company is well positioned to cater to the
growing supply opportunities to the big pharma.
COMPANY
INFRASTRUCTURE
Subject operates
from its Headquarters and Registered Office at Hyderabad. The company has three
multi-purpose manufacturing facilities with a total reactor capacity of 4,500
cu.m, with all support infrastructure like Utilities, environment management and
safety systems.
·
The 1st Facility at village Lingojigudem,
Choutuppal Mandal Nalgonda district, about 60 KM from Hyderabad.
·
The 2nd Facility is a 100% 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.
·
A new facility called “DSN SEZ Unit” is being set
up at their Pharma SEZ at village Chippada, Bheemunipatnam Mandal,
Visakhapatnam Dist., at an estimated cost of Rs.2000.000 Millions. This
facility has commissioned trial runs during the first quarter of the year
2011-12.
The company has 4
Research Centres with the 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, review efficiency of processes and ongoing process. The company has
constantly been augmenting capacities to cater to increasing business needs.
PERFORMANCE AND OPERATIONS REVIEW
During the year,
Subject achieved a turnover of Rs.13050.000 Millions as against Rs.9290.000
Millions during the previous year resulting in a growth of 41%. Exports
constituted 93% of total turnover as against 91% during the last year. Profit
after Tax (PAT) for the year amounted to Rs.4360.000 Millions as against Rs.
3440.000 Millions during the last year, a growth of 27%.
Business has grown
satisfactorily across all the segments, especially during the second half. The
issue of destocking of inventory at their customers seen during the last year
is done with and they see normal flow of business across the product portfolio
of the company.
During the year,
Subject has added 21 products to its product portfolio of which 8 are generic
APIs and intermediates and 13 are custom synthesis APIs and intermediates.
The company
continues to work towards optimizing the capacities at its multi-purpose
manufacturing facilities and also adding additional capacities aimed at the
business opportunities available to it in its domain of capability in line with
its strategy to work with innovators playing a complementary role and
noncompete model with its generic customers.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER, 2011
Rs.
in Millions
|
PARTICULAR |
QUARTER
ENDED |
HALF
YEAR ENDED |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
(a) Net Sales/Income from operations (Net of Excise Duty) |
3540.800 |
7126.300 |
|
(b) Other Operating Income |
119.800 |
182.400 |
|
Total Income |
3660.600 |
7308.700 |
|
EXPENDITURE: |
|
|
|
a. (Increase) / Decrease in Stock in- Trade and Work-in-Progress |
(46.900) |
(409.500) |
|
b. Consumption of Raw Material |
1489.300 |
3280.100 |
|
c. Purchase of Traded Goods |
0.000 |
0.000 |
|
d. Staff Cost |
238.100 |
482.800 |
|
e. Depreciation |
152.000 |
292.000 |
|
f. Other Expenditure |
|
|
|
- Manufacturing Expenses |
306.600 |
606.000 |
|
- Other expense |
291.600 |
627.400 |
|
g. Total |
2430.700 |
4878.800 |
|
Profit from Operations before Other Income, Interest and Exceptional
Items |
1229.900 |
2429.900 |
|
Other Income |
107.600 |
209.100 |
|
Profit before Interest and Exceptional Items |
1337.500 |
2639.000 |
|
Interest |
5.900 |
8.100 |
|
Profit after Interest but before Exceptional Items |
1331.600 |
2630.900 |
|
Exceptional items |
0.000 |
0.000 |
|
Profit from ordinary activities before Tax |
1331.600 |
2630.900 |
|
Tax Expense |
|
|
|
- Current Tax |
244.500 |
491.000 |
|
- MAT Credit Entitlements |
12.500 |
38.500 |
|
- Deferred Tax |
14.100 |
15.000 |
|
Net Profit from ordinary activities after Tax: |
1060.500 |
2086.400 |
|
Extra-ordinary items (net of tax expense) |
0.000 |
0.000 |
|
Net Profit (+)/Loss(-) for the period |
1060.500 |
2086.400 |
|
Paid-up Equity Share Capital (Face Value: Rs. 2/- each) |
265.300 |
265.300 |
|
Reserves excluding revaluation reserves |
-- |
-- |
|
Earning
per share (EPS) |
|
|
|
a) Basic Earnings Per Share before extra-ordinary items Rs. |
8.00 |
15.73 |
|
b) Diluted Earnings Per Share before extra-ordinary items Rs. |
7.99 |
15.73 |
|
c) Basic Earnings Per Share after extra-ordinary items Rs. |
8.00 |
15.73 |
|
d) Diluted Earnings
Per Share after extra-ordinary items Rs. |
7.99 |
15.73 |
|
|
|
|
|
Public
shareholding |
|
|
|
Number of shares |
63454450 |
63454450 |
|
Percentage of shareholding |
47.83 |
47.83 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
Nil |
Nil |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
Nil |
Nil |
|
Percentage
of shares (as a % of total share capital of the company) |
Nil |
Nil |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
69222100 |
69222100 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
52.17 |
52.17 |
STATEMENT OF
ASSETS AND LIABILITIES:
|
|
|
Rs in Millions |
|
Particulars |
As on 30.09.2011 |
|
|
(Unaudited) |
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
265.300 |
|
|
Reserves & Surplus |
20109.000 |
|
|
|
|
|
|
LOAN FUNDS |
271.500 |
|
|
|
|
|
|
DEFERRED TAX
LIABILITIES |
564.200 |
|
|
|
|
|
|
TOTAL |
21210.000 |
|
|
|
|
|
|
FIXED ASSETS |
7965.700 |
|
|
|
|
|
|
INVESTMENT |
4638.400 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
Inventories |
6099.100 |
|
|
Sundry Debtors |
3308.600 |
|
|
Cash & Bank
Balances |
146.700 |
|
|
Other Current
Assets |
2.800 |
|
|
Loans &
Advances |
1588.800 |
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
Other Current
Liabilities |
2456.900 |
|
|
Provisions |
83.200 |
|
|
|
|
|
|
Net
Current Assets |
8605.900 |
|
|
|
|
|
|
TOTAL |
21210.000 |
|
NOTES:
1.
The above results for the period ended 30th
September 2011, as reviewed by the Audit Committee, were considered and
approved by the Board of Directors at its meeting held on 1st
November, 2011 and were subjected to “limite
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
notified under the Companies Act, 1956.
3.
As per clause 41 of the listing agreement, the
company has opted to publish quarterly unaudited Standalone Results and to
publish consolidated results at the year end.
4.
Figures for the previous year / period have been
regrouped or recasted, wherever necessary.
5.
During the current quarter, the company has
allotted 26520 equity shares of Rs.2/- each to the employees on exercise of
their stock options.
6.
Details of Investor complaints pursuant to clause
41 of the listing agreement for the quarter ended 30.09.2011.
Opening: Nil,
Received during the Quarter: 34, Resolved: 34, Closing: Nil
FIXED ASSETS
v Land and Development
v Buildings
v Plant and Machinery
v Laboratory Equipment
v Furniture and Fixtures
v Data Processing Equipment
v Vehicles
WEBSITE DETAILS:
BUSINESS DESCRIPTION:
Subject is an India based manufacturer of Active Pharmaceutical Ingredients (APIs) and Intermediates. Subject is engaged in manufacture of generic APIs, custom synthesis of active ingredients and other specialty chemicals, such as peptides and nutraceuticals. The Company has three multi-purpose manufacturing facilities with a total reactor capacity of 4,500 cubic meter and all support infrastructures, such as Utilities, environment management and safety systems. The Company's main manufacturing and research and development facilities are located in the State of Andhra Pradesh, India. The Company has two subsidiaries: Divis Laboratories (USA) Inc and Divi’s Laboratories Europe AG after marketing of Neutraceutical products in North American and European Countries. For the nine months ended 31 December 2010, Subject revenue increased 30% to RS8.54B. Net income increased 20% to RS2.54B. Revenues reflects an increase in income from the operations and higher other income. Net income was partially offset by an increase in consumption of raw material, higher employees cost, an increase in depreciation charges, a rise in manufacturing expenses and higher other expenditure.
BOARD OF DIRECTORS:
Murali K. Divi
Chairman of the
Board, Managing Director
Dr. Murali K. Divi is Chairman of the Board, Managing Director of Subject. He holds a doctorate degree in Pharmaceutical Sciences from Kakatiya University, Warangal. He is a member of American Institute of Chemical Engineers, American Chemical Society, American Cosmetic Society and American Pharmaceutical Association. He has an experience of over 30 years in the Active pharmaceutical ingredients industry. Dr. Divi has considerable in implementing and managing bulk fine chemical manufacturing facilities conforming to GMP/ US-FDA standards. He has led R and D teams and developed efficient processes for speciality chemicals, pharmaceutical intermediates, herbicides and rodenticides and custom synthesis.
C. Ayyanna
Non-Executive
Independent Director
Professor C. Ayyanna is Non-Executive Independent Director of Subject. Prof. C. Ayyanna holds a B. Tech degree in Chemical Engineering from Andhra University in 1965 and Ph.D., from Indian Institute of Science, Bangalore. He joined the faculty of Chemical Engineering at Andhra University, Visakhapatnam in 1974 and was elevated as Professor of Chemical Engineering in 1987. He is a Fellow of the Institution of Engineers (India), a Member of the Indian Institute of Chemical Engineers and also a Fellow of the Andhra Pradesh Academy of Sciences, Hyderabad. Prof. Ayyanna has undertaken research work relating to chemical engineering and biotechnology. He visited several universities in USA under the Indo-US Scientists Exchange program and several countries for presenting technical papers. He is presently Director of Gonna Institute of Information Technology and Sciences, Visakhapatnam. Prof. C. Ayyanna joined the company as Director on 10.03.2001.
Kiran S. Divi
Director - Business
Development, Executive Director
Mr. Kiran S. Divi is Executive Director and Director - Business Development of Subject. He is a Bachelor of Pharmacy from College of Pharmacy, Manipal. He was involved in understanding the markets in USA in respect of active Pharma ingredients and intermediates for about two years before joining the Board. He is responsible for marketing the company’s generic products in the USA, which is considered an important value market for the Pharma ingredients. Mr. Kiran S.Divi has been a whole-time director of the company since August 10, 2001. Mr. Kiran S. Divi is also a Director in M/s. Divi’s Biotech Private Limited and M/s. Divi’s Resorts Private Limited.
G. Suresh Kumar
Non-Executive
Independent Director
Dr. G. Suresh Kumar is Non-Executive Independent Director of Subject. Dr. Kumar is a Consulting Surgeon and holds an MBBS degree from Gandhi Medical College (NTR University of health Sciences), Hyderabad and M.S. (General Surgery) from Gulbarga University, Karanataka. He worked with the Ministry of Health, Government of Algeria between 1978 and 1983. He is a practicing Consultant Surgeon at several multispecialty hospitals at Hyderabad. He joined the company as Director on 10.03.2001. He is not a director of any other company.
N. V. Ramana
Executive Director
Mr. N. V. Ramana is Executive Director of Subject. He is a graduate in chemistry from Osmania University, Hyderabad and is a Member of American Chemical Society. Mr. Ramana has over 20 years of experience in Pharmaceutical Industry and handled all the varied functions in the active pharmaceutical ingredients industry including Custom Manufacturing and Contract research. He is President of Enmark Exim Services Private Limited.
P. Gundu Rao
Non-Executive
Director
Dr. P. Gundu Rao is Non-Executive Director of Subject. He was Director – R and D and Whole-time Director of Subject. Dr. P. Gundu Rao holds a Masters Degree in Pharmacy from Banaras Hindu University. Dr. Gundu Rao obtained his Ph. D., from Friedrich Schiller University, Jena, Germany in 1962. He taught pharmaceutical sciences at the Birla Institute of Technology and Sciences (BITS), Pilani.
G. Venkat Rao
Non-Executive
Independent Director
Mr. G. Venkat Rao is Non-Executive Independent Director of Subject. Mr. G. Venkata Rao is a Science graduate from Andhra University, post-graduate in Law from Osmania University and is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Rao started his career with Canara Bank in 1962 as Inspecting Officer and had diverse experience with the Bank for about 30 years. He was Finance Director of a paper mill as a nominee of the Bank and was also Managing Director of Canfin Homes Limited, Bangalore. Between 1992-1997, he was the Chairman and Chief Executive of the Lakshmi Vilas Bank Limited. He was member of the Managing Committee of Indian Banks Association, member of the Governing Board of Southern Indian Banks Staff Training College and member of the Managing Committee of Private Bankers Association. He is a Director of Biological E. Limited. Mr. G. Venkata Rao joined the company as Director on 10.03.2001. He is Chairman of the Audit Committee and Review Committee of the company.
Madhusudana Rao Divi
Director - Projects,
Executive Director
Mr. Madhusudana Rao Divi is Director - Projects and Executive Director of Subject. He is a post-graduate in Structural Engineering from Mysore University. He started his career as a Senior Engineer with M/s Howe India and had executed several offshore construction contracts such as Vizag Outer Harbour Project. In 1975, he joined M/s. Towell Construction Company and has executed defence and civil construction contracts in Saudi Arabia, Iraq and Kuwait. Between 1990-1996, he was Executive Director of Sadah General Trading and Contracting Co., Kuwait and implemented several offshore and on-shore construction projects. Mr. Rao Divi looks after Environment Management, project implementation, production planning and regulatory affairs. Mr. Rao Divi is responsible for implementing the new Projects under capital expenditure plans of the company, Plant upgradation to comply with FDA requirements, Environment management and overseeing logistics at Plant. Mr. Rao Divi joined the company as Director on 01.10.1994. He is a not a Director in any other Companies.
K. Satyanarayana
Non-executive
Independent Director
Dr. K. Satyanarayana is Non-executive Independent Director of Subject. Dr. K. Satyanarayana holds M. S. (General Surgery) from Osmania Medical College, Hyderabad and also M. Ch. (Neurosurgery) from Christian Medical College, Vellore. He is a common fellow of Royal Infirmary, Edinburg, UK. He was a Professor of Neuro Surgery at Kakatiya Medical College, Warangal and at Gandhi Medical College, Hyderabad. Dr. Satyanarayana also worked as Professor and Head of Dept. of Neurosurgery at Osmania Medical College, Hyderabad and as the Director of Medical Education, Government of Andhra Pradesh. He has retired from Government service and is currently Consulting Neuro Surgeon at Vijaya Health Care, Durgabhai Deshmukh Hospital and Medwin Hospitals at Hyderabad.
S. Vasudev
Non-Executive Independent Director
Mr. S. Vasudev is Non-Executive Independent Director of Subject. Mr. Vasudev holds a postgraduate degree in Chemical Engineering from Madras University. He started his career with Reserve Bank of India and was deputed to the Industrial Development Bank of India (IDBI). He worked with IDBI for 25 years and has gained wide experience in term lending finance. Later he worked with Apollo Hospitals Group as their Vice President (Finance) from 1988-89 in charge of Hotels, Hospital and Financial Services divisions. He has also worked as a Consultant with the Asian Development Bank, Manila. Mr. Vasudev joined the company as Director being nominee of IDBI on December 1, 1999 and appointed as director liable to retire by rotation on August 9, 2004. He is also a director in Fatpipe Networks India Limited.
PRESS RELEASES:
INDIA'S DIVIS LABS
CMD TRANSFER 32.41% STAKE TO SON AND DAUGHTER
30 September 2011
MUMBAI,
September 30 Asia Pulse - Indian drug firm Divis Laboratories (BSE:532488) said
its chairman and managing director Murali K Divi has transferred 32.41 per cent
stake in the company to his son and daughter.
Murali
K Divi has transferred 12.06 stake in the company to Kiran S Divi, his son, and
20.35 stake to his daughter Nilima Motaparti by way of the gift, Divis
Laboratories said in a filing to the BSE.
In
all, there is a inter se transfer of 4.3 crore shares of the company which
going by the closing price of the scrip on September 27 would amount to Rs
31185.700 Millions.
DIVIS LABORATORIES
REPORTS 19% RISE IN Q1 NET PROFIT
08 August 2011
India, August 08 -- Divis Laboratories has reported unaudited results
for the first quarter ended June 30, 2011.The company's net profit for the
quarter ended June 30, 2011 surged by 18.89% at Rs 1025.900 Millions as
compared to Rs 862.900 Millions for the corresponding quarter last year. Its
total income grew by 36.71% at Rs 3749.600 Millions for the quarter under
review from Rs 2742.700 Millions for the same quarter last year. Divis
Laboratories, together with its subsidiaries, engaged in the manufacture and
sale of active pharma ingredients (APIs) and intermediates for the
pharmaceutical industry in India and worldwide.
OUTCOME OF
COMPENSATION COMMITTEE MEETING
06 August 2011
India, August 06 -- Divis Laboratories Ltd has informed BSE that
Compensation Committee of Board of Directors in its meeting held on August 06,
2011 made the allotment of 26520 equity shares of Rs. 2/- each to the employees
under ESOP 2006 Scheme of the Company. Consequent to the above allotment, the
paid up share capital of the Company will get increased to 132676550 equity
shares from 132650030 equity shares of face value Rs. 2/- each.
INDIA'S DIVIS LABS
FACILITY INSPECTED BY USFDA
04 August 2011
NEW
DELHI, August 3Asia Pulse - India's Divis Laboratories (BSE:532488) said
Wednesday its facility near Hyderabad has been inspected by the US health
regulator for pre-approval of products to be established and sold by the unit
and current good manufacturing practices (GMP).
The
company had "an inspection by the USFDA, with no major observations,"
for unit 1 of the project near Hyderabad during July, 2011, Divis Laboratories
said in a filing to the Bombay Stock Exchange (BSE).
"The
audit concluded with minor observations primarily about additional records for
further improvement of existing records," it added.
INDIA: DIVIS
LABORATORIES ADVANCES OPERATIONS
05 February 2011
Divis
Laboratories detailed that its combined net income improved by 45.07% to Rs
984.200 Millions against a net profit of Rs 678.400 Millions for the period of
2009.
In
the meantime, the net sales rose to Rs 3096.900 Millions for Q3 ended December
31, 2010 against Rs 1963.100 Millions in the same period last fiscal.
Moreover,
as per plan its project at Visakhapatnam which is at a cost of Rs 2000.000
Millions, is progressing well.
Established
in 1990, Divis Laboratories was prime fundamental with Research and
Development.
Divis
Laboratories focuses on evolving new methods for the production of Active
Pharma Ingredients and Intermediates.
To
deliver whole turnkey solutions to the domestic Indian pharmaceutical industry,
the firm in a matter of short time extended its breadth of operations.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
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.49.78 |
|
|
1 |
Rs.80.10 |
|
Euro |
1 |
Rs.68.82 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
NO |
|
--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 |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.