BENGALURU (Reuters) – Indian pharmaceutical firm Divi’s Laboratories Ltd on Friday reported a third-quarter profit that widely missed analysts’ estimates, hurt by higher inventory costs, and sent its shares tumbling more than 13%.
The Hyderabad-based company said consolidated net profit for the three months ended Dec. 31 was 3.07 billion rupees ($37.34 million), down from 9.02 billion rupees last year.
Analysts on an average had expected the company, which makes drug ingredients, to report a profit of 5.33 billion rupees.
Shares of Divi’s Labs slumped as much as 13.6% to 2,822.70 rupees to post their biggest intraday percentage loss since March 2020.
Divi’s makes active pharmaceutical ingredients which are key biologically active elements in a drug that help with the desired health effects. The company also makes chemical substances used to make drugs.
Consolidated revenue from operations for the company, declined 31.5% from last year, while inventory costs in the third quarter were at 1.23 billion rupees.
Smaller rival Laurus Labs Ltd earlier this week reported a 32.1% jump in third-quarter profit, boosted by strong demand in its businesses that make chemicals and other ingredients used in medicines.
(Reporting by Rama Venkat in Bengaluru; editing by Eileen Soreng)
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