Divi's Labs Q4 PAT at ₹320.97 crore, down 64.1 percent from ₹894.64 crore a year ago

Pharma company, Divi's Labs registered feeble Q4 earnings. Consolidated Q4FY23 PAT stood at ₹320.97 crore, declining by 64.1% from ₹894.64 crore in the same quarter a year ago. Meanwhile, the company also recorded a drop in EBITDA, margins, and revenue. EBITDA stood at ₹487.6 crore in the quarter, falling by a massive 55.8% from ₹1,104.4 crore in Q4 of FY22. EBITDA margins also contracted to 25% in Q4FY23 as against 43.9% in Q4FY22.

Total revenue from operations came in at ₹1,950.8 crore as against ₹2,518.4 crore in Q4FY22, registering a drop of 22.5% YoY.

In the quarter, the company posted a forex loss of ₹3 crore compared to gains of ₹29 crore in the March 2022 quarter.

For the full year FY23, Divi's Laboratories has earned a consolidated total income of ₹8112 crore as against ₹9074 crore during the previous financial year. This financial year, its total income is about 11 % lower than the previous financial year because of a significantly lower volume of covid situational opportunities.

Also, PBT for the current year came to ₹2369 crore in FY23 as against ₹3684 crore for the previous year. PAT for the year amounted to ₹1823 crore as against a PAT of ₹2960 crore in FY22.

The board of directors in a meeting held on Saturday recommended a huge dividend payout for shareholders for the fiscal year FY23. The dividend will be 1500% aggregating to ₹30 per equity share. The company has also announced its financial performance for the quarter and year-ended March 31, 2023 period.

In its regulatory filing, Divi's Labs said. "recommended a Dividend of ₹ 30/- (i.e. 1,500%) per equity share of face value ₹ 2/- each for the financial year 2022-23, subject to approval of the members at the ensuing 33rd Annual General Meeting (AGM)."

It added, "The dividend shall be credited/warrants thereof dispatched within specified timelines from the conclusion of the AGM."

Divi's Lab stated that the AGM date and record date for the purpose of the payment of dividends will be announced in due course.

In FY22, the company also paid a total dividend of 1500% aggregating to ₹30 per equity share. In FY21, the dividend payout was 1000% to ₹20 per share.

At the current market price, Divi's Labs dividend yield is at 0.97%.

Overall, in FY23, the company earned a consolidated total income of ₹8112 crore as against ₹9074 crore during the previous financial year. PAT for the year amounted to ₹1823 crore as against a PAT of ₹2960 crore in FY22.

Dividends are a form of incentive that is distributed by a listed company from their profits to shareholders. Generally, when a company pays a proportion of its profit as a dividend, any amount which is not distributed as dividends are put in the free reserves and surplus of that company.

On Friday, Divi's Lab share price closed at ₹3097.75 apiece down by ₹58.55 or 1.9% on BSE.