Divi's Laboratories Ltd. — Interim / Quarterly Report 2020

Nov 5, 2019

Divi' s Laboratories Limited

05 November, 20 19

To The Secretary National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (East) MUMBAI- 400 051

To The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street MUMBAI- 400 001

Stock Code: DIVISLAB

Stock Code: 532488

Dear Sir/ Madam,

Sub: Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended 30 September, 2019

Ref: Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015

Further to our intimation dated 25 October, 2019, we would like to infom1 that the Board of Directors of the Company at its meeting held on 05 November, 2019 has, inter alia, approved the Unaudited Financial Results for the quarter and half year ended 30 September, 2019.

In tenns of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, we enclose herewith the fo llowing:

• I. Unaudited Standalone Financial Results for the quarter and half year ended 30 September, 2019 along with Limited Review Report of the Statutory Auditors thereon.
• 1. Unaudited Consolidated Financial Results for quarter and half year ended 30 September, 2019 along with Limited Review Report of the Statutory Auditors thereon.
• 1. Press Release on the said Financial Results of the Company.

The Board meeting commenced at 16.15 Hrs and concluded at 17 . .1f.(Hrs.

This is for your infonnation and records.

"An IS0-9001, IS0-14001 and OHSAS-18001 Triple certified company"

Regd. Off.: Divi Towers, 1-72/23(P)/DIVIS/303, Cyber Hills, Gachibowli, Hyderabad- 500 032, Telangana, INDIA. Tel : 91-40-2378 6300, Fax : 91-40-2378 6460, CIN : L2411 OTG1990PLC011854 E-mail: mail@divislabs.com, Website: www.divislabs.com

DIVI'S LABORATORIES LIMITED STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER, 2019

(Rs. In Lakhs)
			Quarter ended		Half Year ended		Year ended
${\bf S}$	Particulars	30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
No		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
$\mathbf 1$	Income:
	a) Revenue from operations	140392	113992	128500	254384	228031	487966
	b) Other Income	4736	3163	8005	7303	12884	15658
	Total Revenue from Operations	145128	117155	136505	261687	240915	503624
2	Expenses
	a) Cost of materials consumed	60699	50398	55563	111097	95330	208205
	b) Purchases of stock-in-trade
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2956)	(5025)	(8239)	(7981)	(9862)	(24422)
	d) Employee benefits expense	14758	13795	13466	28553	25599	53072
	e) Depreciation and amortization expense	4591	4381	4239	8972	8399	16881
	f) Finance Costs	379	32	24	411	88	350
	g) Other Expenses	19355	16963	16297	35722	30365	66215
	Total expenses	96826	80544	81350	176774	149919	320301
3	Profit before exceptional Items and tax (1-2)	48302	36611	55155	84913	90996	183323
$\overline{4}$	Exceptional items
5	Profit before Tax (3-4)	48302	36611	55155	84913	90996	183323
6	Tax Expense
	a) Current Tax	11951	9365	14761	21316	23327	47245
	b) Deferred Tax	1068	511	629	1579	1288	2813
	Total Tax Expense	13019	9876	15390	22895	24615	50058
$\overline{\mathcal{I}}$	Profit for the period (5-6)	35283	26735	39765	62018	66381	133265
$\overline{8}$	Other Comprehensive Income:
	Items that will not be reclassified to Profit or Loss:
	- Remeasurement of post-employment benefit obligation	35	40	23	75	47	141
	Income Tax relating to the above	(9)	(10)	(6)	(19)	(13)	(36)
	Total other comprehensive Income	26	30	17	56	34	105
$\vert$ 9	Total comprehensive Income for the period (7+8)	35309	26765	39782	62074	66415	133370
10	Paid-up Equity Share Capital (Face Value Rs.2 per share)	5309	5309	5309	5309	5309	5309
$1,1$	Other Equity excluding revaluation reserve						692022
12	Earnings per share for continuing operations (of Rs.2/-each) (not annualised)
	a) Basic (Rs.)	13.29	10.07	14.98	23.36	25.01	50.20
	b) Diluted (Rs.)	13.29	10.07	14.98	23.36	25.01	50.20

$\overline{\phantom{a}}$

ORATO

DIVI'S LABORATORIES LIMITED STATEMENT OF STAND ALONE UNAUDITED ASSETS AND LIABILITIES AS AT 301 hSEPTEMBER, 2019

	(Rs. In Lakhs)
			As At
S. No.	Particulars	30.09.2019	31.03.2019
		(Unaudited)	(Audited)
A	ASSETS
1	Non-current assets
	Property, plant and equipment	219732	208339
	Capital work-in-progress	93957	49191
	Intangible assets	359	405
	Financial assets
	Investments	68974	55462
	Loans	3757	3404
	Income Tax Assets (net)	1928	1928
	Other non-current assets	17522	20540
	Sub-total: Non-current assets	406229	339269
2	Current assets
	Inventories	180380	166318
	Financial assets
	Investments	45233	139834
	Trade receivables	132045	128224
	Cash and cash equivalents	3020	294
	Bank balances other than Cash and cash equivalents	6938	10226
	Loans	18	11
	Other financia l assets	157	135
	Other current assets	31553	19707
	Sub-total: Current assets	399344	464749
	TOTAL ASSETS	805573	8040 18
B	EQUITY AND LIABILITIES
1	Equity:
	Share Capital	5309	5309
	Other Equity	702890	692022
	Sub-total: Equity	708199	697331
2	Non-current liabilities
	Provisions	1443	1317
	Deferred tax liabilities (net)	23716	22118
	Sub-total: Non-current liabilities	25159	23435
3	Current Liabilities
	Financial liabilities
	Borrowings	1353	10560
	Trade payables	51942	48331
	Other financial liabilities	7081	6289
	Provisions	111	111
	Current Tax liability (net)	103	-
	Other current liabi lities	11625	17961
	Sub-total: Current liabilities	72215	83252
	Total Liabilities	97374	106687
	TOT.ili _FOUITY AND LIABILITIES	" ~~805573	804018

,&;;puse cnartere~ rvJ ~J/(/~~ ~·AAC:d 'lf) ~ OJ. '> cr- ~ )I ) i?t\lo ::l J: ._,._,q> .?7S4N /NS000'. c.' *If Yderabad * 0""'

I

p(}j))~ ------IJ

DIVI'S LABORATORIES LIMITED STATEMENT OF STANDALONE UNAUDITED CASH FLOWS FOR THE HALF YEAR ENDED 30'h SEPTEMBER, 2019

(Rs in Lakhs)
Particulars	30.09.2019(Unaudited)	30.09.2018(Unaudited)(Refer Note 2)
A.Cash flow from operating activities
Profit before income tax	849 13	90996
Adjustments for:
Depreciation and amortisation expense	8972	8399
Unrealised foreign exchange ga in	(1758)	(2933)
Interest Income	(527)	(354)
Di vidend classified as in vesting cash fl ows	(2943)	( 4135)
Gain on sa le of in vestments	(577)	(40)
Provision for doubtful debts	245	30
Finance costs	411	88
Changes in fair value of mutual funds	(2365)	(296)
Loss on disposa l I discard of assets	233	136
Government grant	(2)	-
	86602	91891
Change in operating assets and liabilities
(Increase) /Decrease in trade receivables	(2 100)	( I6007)
(Increase) /Decrease in inventories	(I4062)	(220 18)
Increase /(Decrease) in trade payables	3405	12738
(Increase) /Decrease in other non-cutTent Loans	(353)	(46)
(Increase) /Decrease in other non-cun·ent assets	I	(7)
(Increase) /Decrease in Current Loans and other current fin ancial	(29)	2287
assets(Increase) /Decrease in other cun·ent assets	( 11 846)	(754)
Increase /(Decrease) in long tenn employee benetit obl igation	126	145
Increase /(Decrease) in short term employee benefit obligation	75	16
Increase/ (Decrease) in other fin ancial li abilities	(257)	( 1365)
Increase /(Decrease) in other cun·ent liabi lities	(6351)	(370)
Cash generated from operations	55211	66510
Income taxes paid including withholding tax and net of refunds	(2 1213)	( 15420)
Net cash inflow from operating activities	33998	51090
B.Cash flows from investing activities
Payments for property, plant and equipment	(6 1228)	(20607)
Proceeds from sa le of property, plant and equipment	-	2
Gain on Sale of investments	577	40
Payments for purchase of In vestments	( 13943)	(55635)
Proceeds out of sa le of In vestments	97397	57455
Di vidend received	2943	4 135
Interest on deposit	540	23 1
Investment in deposits	3266	2 18
Net cash inflow I (outflow) from investing activities	29552	(14161)

STATEMENT OF STANDALONE UNAUDITED CASH FLOWS FOR THE HALF YEAR ENDED 30' 11 SEPTEMBER, 2019 (contd .. )

		(Rs In lakhs)
Particulars	30.09.2019	30.09.2018
	(Unaudited)	(Unaudited)
		(Refer Note 2)
c.Cash flows from financing activities
(Repayment) of work ing capital loans	(8 11 7)	( 1148)
Interest paid	(41 I)	(88)
Dividends paid to company's shareholders	(51206)	(32004)
(Including Corporate Di vidend tax)
Net cash intlow I (outtlow) from financing activities	(59734)	(33240)
Net increase (decrease) in cash and cash equivalents (A+B+C)	3816	3689
Cash and cash equivalents at the beginning of the financial year	(796)	(4184)
Cash and cash eq uivalents at end of the year	3020	(495)

NOTES:

• I. The above Statement of standalone unaudited financial results for the quarter and half year ended 30'h September, 20 19, Statement of standalone unaudited assets and liabilities as at 30'11 September, 2019 and Statement of standalone unaudited cash flows for the half year ended 30'h September, 2019 ('Standalone Statements') are prepared in accordance with Indian Accounting Standards (' lnd AS') prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 15 as amended. The same were, as reviewed by the Audit Committee, considered and approved by the Board of Directors at its meeting held on 5'h November, 2019. The same also were subjected to ' limited review' by the Auditors of the Company and their report contains no qualification.
• 1. The comparative figures of cash flows for the half year ended 30'h September, 2018 included in the above referred Standalone Statements were as reviewed by the Audit Committee and approved by the Board of Directors only and have not been subjected to review by the Auditors as the mandatory requirement of limited review of cash flows has been made applicable for the period beginning from 1'1 April 2019 pursuant to Regulation 33(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.
• 1. The Company is engaged in the manufacture of Active Pharmaceutical Ingredients, intermediates and nutraceutical ingredients; and the same constitutes a single reportabl e business segment as per Ind AS 108.
• 1. The Company does not have any discontinued operations and the Profit for the period represents the Profits from continuing operations only.
• 1. As approved by the Members of the Company at the 29'11 Atu1ual General Meeting held on 23'd August, 2019, a dividend of Rs. 16/- per equity share of Rs.2/- each for the year ended 31 51March, 2019, aggregating to Rs 42475 lakhs, has been paid on 27'h August, 2019.
• 1. The Ministry of Corporate Affairs (MCA), on 30'11 March, 2019 , notified Ind AS 116 "Leases" as part of the Companies (Indian Accounting Standard) Amendment Rules, 2019. The new Standard is effective for accounting periods beginning on or after 151 April, 2019. The adoption of the Standard did not have any material impact to the financial results of the Company.
• 1. Details of forex ga inl(loss) are as given below:

						(Rs. in Lakhs)
		Qua11er ended			Half Year ended	Year ended
	3o.o9.2019 I	3o o6.2o 19 I 30.09.201	8	30.09.2019 I 30.09.20	18	3103.20 19
Forex gain/(loss)	1294 I	(596) I	5278	698 I	7947	3092

Forex gain has been included in Other Income and loss has been included in Other Expenses.

1. Figures for the previous year/period have been reclassified/ regrouped wherever necessary to conform to current year's classification.

Price Waterhouse Chartered Accountants LLP

The Board of Directors M/s. Divi's Laboratories Limited Divi's Towers, 1-72/ 23(P) I 303, Cyber Hills, Gachibowli, Hyderabad, 500032

• 1. We have reviewed the standalone unaudited financial results of Divi's Laboratories Limited (the "Company") for the quarter ended September 30, 2019 and the year to date results for the period April 01, 2019 to September 30, 2019 which are included in the accompanying "Statement of Standalone Unaudited financial results for the quarter and half year ended September 30, 2019", the "Statement of Standalone Unaudited assets and liabilities as on September 30, 2019" and the "Statement of Standalone Unaudited cash flows for the half-year ended September 30, 2019" together with the notes thereon (the "Standalone Statement"). The Standalone Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes. Attention is drawn to the fact that the Statement of Standalone Unaudited cash flows for the corresponding period from April 01, 2018 to September 30, 2018, as reported in the Standalone Statement has been approved by the Board of Directors, but has not been subjected to review. The Standalone Statement is the responsibility of the Company's management and has been approved by the Board of Directors. Our responsibility is to issue a report on th e Standalone Statement based on our review.
• 1. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform th e review to obtain moderate assurance as to whether the Standalone Statement is free of material misstatement.
• 1. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 4- Based on our review conducted as above, nothing has come to our attention that causes us to believe that the Standalone Statement has not been prepared in all material respects in accordance with the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: FRN 012754N/ N500016

Sunit Kum~ ar Basu Partner Membership Number 55000 UDIN: 1905500oAAAAEOn54

Place: Hyderabad Date: November 05, 2019

Price Waterhouse Chartered Accountants LLP, Plot No. 77/A, 8-2-624/A/1, 3rd Floor, Road No.10, Banjara Hills Hyderabad - 500 034

T: +91 (40) 4424 6ooo, F: +91 (40) 4424 6300

Registered office and Head office: Sucheta Bhawan. 11A Vishnu Digambar Marg. New Delhi 110 002

Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-5001) with effect from July 25. 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its ICAI registration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)

DIVI'S LABORATORIES LIMITED STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THEQUARTER AND HALF YEAR ENDED 30th SEPTEMBER, 2019

	(Rs. In Lakhs)
			Quarter ended			Half Year ended	Year ended
S.	Particulars	30.09.2019	30.06.2019	30.09.2018	30.09.2019	30.09.2018	31.03.2019
N 0		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
				(Refer Note.2)		(Refer Note.2)
$\mathbf{1}$	Income:
	a) Revenue from operations	144557	116288	132393	260845	231917	494626
	b) Other Income	4703	3032	8043	7123	12897	15563
	Total Revenue from Operations	149260	119320	140436	267968	244814	510189
$\overline{2}$	Expenses
	a) Cost of materials consumed	61286	50992	55910	112278	96219	210389
	b) Purchases of stock-in-trade	184	123	465	307	2315	2592
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(2104)	(5882)	(7155)	(7986)	(12429)	(30459)
	d) Employee benefits expense	15057	14086	13758	29143	26152	54227
	e) Depreciation and amortization expense	4593	4383	4241	8976	8403
	f) Finance Costs						16890
	g) Other Expenses	379	32	24	411	88	350
	Total expenses	21078	18255	17266	38721	32264	70693
$\overline{3}$	Profit before exceptional Items and tax (1-2)	100473	81989	84509	181850	153012	324682
$\overline{4}$	Exceptional items	48787	37331	55927	86118	91802	185507
5	Profit before Tax (3-4)
6	Tax Expense	48787	37331	55927	86118	91802	185507
	a) Current Tax	12092
	b) Deferred Tax	1017	9568519	14766789	216601536	233271336	47551
	Total Tax Expense	13109	10087	15555	23196	24663	2682
$7\phantom{.0}$	Profit for the period (5-6)	35678	27244	40372	62922	67139	50233135274
8	Profit for the period attributable to:
	Shareholders of the Company	35678	27244	40372	62922	67139	135274
	Non-Controlling Interest
9	Other Comprehensive Income:
	a) Items that will not be reclassified to Profit or Loss
	i) Remeasurement of post- employment benefit
	obligations	35	40	23	75	47	141
	ii) Income tax relating to the above	(9)	(10)	(6)	(19)	(13)	(36)
	b) Items that will be classified to Profit or Loss:
	i) Exchange differences in translating the financial
	statements of foreign operationsii) Income tax relating to the above	305(37)	-**	(66)	305(37)	(132)	(140)
	Total other comprehensive Income (a+b)			(49)		(98)
	Total other comprehensive income for the period	294	30		324		(35)
10	attributable to:
	Shareholders of the Company	294	30	(49)	324	(98)	(35)
	Non-Controlling Interest
11	Total comprehensive Income for the period (7+9)	35972	27274	40323	63246	67041	135239
12	Total comprehensive income for the period attributable to:
	Shareholders of the Company	35972	27274	40323	63246	67041	135239
	Non-Controlling Interest
13	Paid-up Equity Share Capital (Face Value Rs.2 per share)	5309	5309	5309	5309	5309	5309
14	Other Equity excluding revaluation reserve						690406
15	Earnings per share for continuing operations (of Rs.2/-
	each) (not annualised)
	a) Basic (Rs.)	13.44	10.26	15.21	23.70	25.29	50.96
	b) Diluted (Rs.)	13.44	10.26	15.21	23.70	25.29	50.96
	Charteredexhouse

$C-500$ đ 012754N/N500016 $\star$ Hyderabad $\star$ $\epsilon$

CAD-32

DIVI'S LABORATORIES LIMITED STATEMENT OF CONSOLIDATED UNAUDITED ASSETS AND LIABILITIES AS AT 30th SEPTEMBER, 2019

(Rs. In Lakhs)As At
S. No.	Particulars	30.09.2019	31.03.2019
		(Unaudited)
$\boldsymbol{A}$	ASSETS		(Audited)
$\boldsymbol{l}$	Non-current assets
	Property, plant and equipment	219762	208372
	Capital work-in-progress	93957	49191
	Intangible assets	359	405
	Financial assets
	Investments	68238	54726
	Loans	3757	3404
	Income Tax Assets (net)	1928	1928
	Deferred Tax Assets	241	234
	Other non-current assets	17542	20560
	Sub-total: Non-current assets	405784	338820
$\overline{2}$	Current assets
	Inventories	190956	177234
	Financial assets
	Investments	45233	139834
	Trade receivables	120517	116337
	Cash and cash equivalents	5531	1300
	Bank balances other than Cash and cash equivalents	6938	10226
	Loans	18	11
	Other financial assets	156	135
	Other current assets	31938	19928
	Sub-total: Current assets	401287	465005
	TOTAL ASSETS	807071	803825
$\boldsymbol{B}$	EQUITY AND LIABILITIES
$\boldsymbol{l}$	Equity:
	Share Capital	5309	5309
	Other Equity	702446	690406
	Sub-total: Equity	707755	695715
$\overline{2}$	Non-current liabilities
	Provisions	1443	1317
	Deferred tax liabilities (net)	23716	22118
	Sub-total: Non-current liabilities	25159	23435
3	Current Liabilities
	Financial liabilities
	Borrowings	1353	10560
	Trade payables	53046	49226
	Other financial liabilities	7081	6289
	Provisions	111	111
	Current Tax Liabilites (net)	878	419
	Other current liabilities	11688	18070
	Sub-total: Current liabilities	74157	84675
	Total Liabilities	99316	108110
	TOFAL EQUITY AND LIABILITIES	807071	803825
$\delta$	LPIN AAC-5001

4N/N50001 $\star$ Hyderabad $\star$ d

STATEMENT OF CONSOLIDATED UNAUDITED CASH FLOWS FOR THE HALF YEAR ENDED 30111 SEPTEMBER, 2019

(Rs. in Lakhs)
Particulars	30.09.2019	30.09.2018
	(Unaudited)	(Unaudited)
		(Refer Note 2)
A. Cash flow from operating activities
Profit before income tax	86 11 8	91802
Adjustments fo r:
Depreciation and amortisation expense	8976	8403
Unrealised foreign exchange Ga in	( 1486)	(1240)
Interest Income	(340)	(354)
Dividend classified as investing cash fl ows	(2943)	(4135)
Gain on sale of investments	(577)	(40)
Provision for doubtful debts	245	30
Finance costs	411	88
Changes in fa ir va lue of mutual funds	(2365)	(296)
Loss on disposal I discard of assets	233	136
Government grant	(2)	-
	88270	94394
Change in operating assets and liabilities
(Increase) /Decrease in trade receivables	(2732)	(15 254)
(Increase) /Decrease in inventories	(13722)	(23182)
Increase I (Decrease) in trade payables	36 13	128 11
(Increase) /Decrease in other non-current Loans	(353)	(49)
(Increase) /Decrease in other non-current assets	I	263
(Increase) /Decrease in Current Loans and other current	(28)	8 19
financial assets
(Increase) /Decrease in other current assets	(120 10)	(857)
Increase /(Decrease) in long term employee benefit	126	145
obligationIncrease /(Decrease) in short term employee benefit	380	(18)
obligation
Increase/ (Decrease) in other financial liabilities	(257)	(1365)
Increase /(Decrease) in other current liabilities	(6397)	(516)
Cash generated from operations	56891	67191
Income taxes paid including withholding tax and net of	(2 120 1)	(15694)
refundsNet cash inflow from operating activities	35690	51497
B. Cash flows ft·om investing activities
Payments for property, plant and equipment	(6 1229)	(20613)
Proceeds from sale of property, plant and equipment	-	2
Gain on Sale of investments	577	40
Payments for purchase of Investments	(13943)	(55635)
Proceeds out of sale of Investments	97398	57455
Dividend received	2943	41 35
Interest received	353	23 1
Investment in deposits	3266	218
Net cash inflow I (outflow) from investing activities	29365	(14167)

		(Rs. in Lakhs)
Particulars	30.09.2019(Unaudited)	30.09.2018(Unaudited)(Refer Note 2)
C. Cash flows from financing activities
Proceeds from working capital loans	(8 11 7)	(1148)
Interest paid	(411)	(88)
Dividends paid to company's shareholders(Including Corporate Dividend tax)	(51206)	(32004)
Net cash inflow I (outflow) from financing activities	(59734)	(33240)
Net increase in cash and cash equivalents (A+B+C)	5321	4090
Cash and cash equivalents at the beginning of the financial	2 10	(2086)
year
Cash and cash equivalents at end of the year	5531	2004

STATEMENT OF CONSOLIDATED UNAUDITED CASH FLOWS FOR THE HALF YEAR ENDED 301 " SEPTEMBER, 2019 (contd .. )

NOTES:

• I. The above Statement of consolidated unaudited financial results for the quarter and half year ended 30'" September 20 19, Statement of consolidated unaudited assets and liabilities as at 30'" September, 2019 and Statement of consolidated unaudited cash fl ows for the half year ended 30'" September, 20 19('Consolidated Statements') are prepared in accordance with Indian Accounting Standards (' lnd AS" ) prescribed under Section 133 of the Companies Act 2013 read with the relevant rules thereunder and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regul ations, 20 15 as amended. The same were, as reviewed by the Audit Committee, considered and approved by the Board of Directors at its meeting held on 5'" November, 2019. The same also were subjected to 'limited review' by the Auditors of the Company and their report contains no qualification.
• 1. The comparative fi gures of fin ancial results for the quarter and half year ended 30th September, 20 18 and Cash Flows for the half year ended 30'" September, 20 18 included in the above referred Consolidated Statements were as reviewed by the Audit Committee and approved by the Board of Directors only and have not been subjected to review by the Auditors as the mandatory requirement of limited review of consolidated unaudited financial results and consolidated unaudited cash flows has been made applicable for the period beginning from I 51April, 20 19 pursuant to Regul ation 33(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 15 as amended.
• 1. The consolidated statements include the financial results of Divi's Laboratories Limited and its two subsidiaries Divis Laboratories (USA) Inc. and Divi's Laboratories Europe AG.
• 1. The group is engaged in the manufacture of Active Pharmaceutical Ingredients, intermediates and nutraceutical ingredients; and the same constitutes single reportable business segment as per lnd AS I 08.
• 1. The Company does not have any discontinued operations and the Profit for the period represents the Profits from continuing operations onl y.
• 1. The Ministry of Corporate Affairs (MCA), on 30'" March, 2019, notified lnd AS 116 "Leases" as part of the Companies (Indian Accounting Standard) Amendment Rul es, 20 19. The new Standard is effective for accounting periods beginni11g on or after I 51 April, 20 19. The adoption of the Standard did not have any material impact to the financial results of the Company.
• 1. Details of forex gain!(loss) are as given below:

						(Rs.in Lakhs)
	Quarter ended			Half Year ended	Year ended
		3o.o9.2019 1 3o.o6.2019 1 3o.o9.2o 18			3o.o9.2o19 1 3o.o9.20 18	31.03.2019
Forex gain/(loss)	1317 1	(612) 1	5316	705 1	7947	3086

Forex gam has been mcluded 111 Other Income and loss has been mcluded 111 Other Expen ses

• 1. ** Amount is below the rounding off norm adopted by the group.
• 9 . Figures for the previous year/period have been rec lassified/regrouped wherever necessary to conform to current year's classification.

Place: Hyderabad lV I Date: 5111November, 2019 airman & Managing Director

Price Waterhouse Chartered Accountants LLP

The Board of Directors M/s. Divi's Laboratories Limited Divi's Towers, 1-72/23(P) / 303, Cyber Hills, Gachibowli, Hyderabad, 500032

• 1. We have reviewed the consolidated unaudited financial results of Divi's Laboratories Limited (the "Parent") and its subsidiaries (the parent and its subsidiaries hereinafter referred to as the "Group"), [(refer Note 3 to the Consolidated Statement)] for the quarter ended September 30, 2019 and the year to date results for the period April 01, 2019 to September 30, 2019 which are included in the accompanying "Statement of Consolidated Unaudited financial results for the quarter and half year ended September 30, 2019" the "Statement of Consolidated Unaudited assets and liabilities as on September 30, 2019" and the "Statement of Consolidated Unaudited cash flows for the half-year ended September 30, 2019" together with notes thereon (the "Consolidated Statement"). The Consolidated Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations"), which has been initialled by us for identification purposes. Attention is drawn to the fact that the consolidated figures for the unaudited financial results for corresponding quarter ended September 30, 2018, the corresponding period from April 01, 2018 to September 30, 2018 and consolidated figures for the Statement of Cash flows for the period from Aptil 01, 2018 to September 30, 2018, as reported in these financial results have been approved by the Parent's Board of Directors, but have not been subjected to review.
• 1. This Consolidated Statement, which is the responsibility of the Parent's Management and has been approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Repmting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Consolidated Statement based on our review.
• 3· We conducted our review ofthe Consolidated Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Consolidated Statement is free of material misstatement. A review of interim financial information consists of making inquities, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002

Price Waterhouse (a Partnership Firm) converted into Price Waterhouse Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: LLPIN AAC-5001) with effect from July 25, 2014. Post its conversion to Price Waterhouse Chartered Accountants LLP, its I CAl registration number is 012754N/N500016 (ICAI registration number before conversion was 012754N)

Price Waterhouse Chartered Accountants LLP

• 1. The Consolidated Statement includes th e results of the following subsidiaries:
  • a. Divis Laboratories (USA) Inc.
  • b. Divi's Laboratories Europe AG
• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above nothing has come to our attention that causes us to believe th at the accompanying Consolidated Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in th e aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The unaudited consolidated financial results includes the interim fin ancial results I financial information of 2 subsidiaries which have not been reviewed by their auditors, whose interim financial results refl ect total assets of Rs. 24,902 lakhs and net assets of Rs. 1,611 lakhs as at September 30, 2019 and total revenu e of Rs. 9,613 lakhs and Rs. 17,869 lakh s, total net profit after tax of Rs. 632 lakhs and Rs. 1,115 lakhs and total comprehensive income of Rs. 901 lakhs and Rs. 1,384 lakhs respectively for the quarter ended September 30, 2019 and for the period from April 01, 2019 to September 30, 2019 and net cash inflows of Rs. 1,505lakhs for the period from April 01, 2019 to September 30, 2019, as considered in the unaudited consolidated financial results. According to the information and explanations given to us by the Management, these interim financial results I financial information are not material to the Group.

Our conclusion on the Consolidated Statement is not modified in respect of the above matter.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: FRN 012754NIN500016

Sunit Kum~ ar Basu Partner Membership Number 55000 UDIN: 190550ooAAAAEN5241

Place: Hyderabad Date: November 05, 2019

CIN No.L24110TG1990PLC011854 1-72/23(P)/DIVIS/303, Cyber Hills, Gachibowli Hyderabad - 500 032 Telangana, India Phone: 91-40-23786300 email: cs@divislabs.com

Press Release dated 5th November, 2019

Divi's Labs earns a PAT of ~ 357 crores for Q2 of FY20 on consolidated basis

Consolidated Results

Divi's Laboratories has earned a consolidated total revenue of ~ 1493 crores for quarter ended 30th September, 2019 as against a consolidated total revenue of ~ 1404 crores in the corresponding quarter of the previous year. Profit after Tax (PAT) for the current quarter came to ~357 crores as against a PAT of ~ 404 crores for the corresponding quarter of last year.

Forex gain for the current quarter amounted to ~ 13 crores as against a gain of~ 53 crores during the corresponding quarter of last year.

For the half-year ended 30th September, 2019, the Company earned a consolidated total income of ~ 2680 crores as against a consolidated total income of~ 2448 crores during the previous half-year. PAT for the current half-year came to ~ 629 crores as against ~ 671 crores for the previous half-year. Forex gain for the current half-year amounted to ~ 7 crores as against a gain of~ 79 crores during the corresponding period last year.

Standalone Results

On a standalone basis, the Company's earnings are as given below:

				c~ in crores)
Particulars	For the half year endedFor the Quarter ended
	30-09-19	30-09-18	30-09-19	30-09-18
Total Revenue	1451	1365	2617	2409
PBT	483	552	849	910
PAT	353	398	620	664

Forex Gain/(loss)

Particulars of fo rex gain/(loss) for the period are given below:

~in crores)

Pa rticu Ia rs	For the half year endedFor the Quarter ended
	30-09-1930-09-18		30~09-19	30-09-18
Forex gain	13	53	7	79

Capex Programs

Company's capex programs at DC-SEZ near Hyderabad and DCV-SEZ near Visakhapatnam are going as per schedule and major part of these projects are expected to be completed by end of the year 2019-20.