Credit rating agency, CARE has reaffirmed ‘AA+ (Stable)’ rating assigned to Divis Laboratories’ long-term bank facilities worth Rs 25 crore. The rating agency has also reaffirmed ‘AA+ (Stable)/ A1+’ rating assigned to company’s long-term/short-term bank facilities worth Rs 243 crore.
The ratings assigned to the bank facilities of Divi’s Laboratories (DLL), continue to factor in well experienced promoters having long track record of operations in the pharmaceutical industry, proven research and development capabilities with a large number of Drug Master Files (DMF) filings, well-equipped manufacturing facilities with the United States Food & Drug Administration (USFDA) and current Good Manufacturing practices (cGMP) certified production units, healthy growth in the revenue coupled with strong profitability margins in FY16 and 9MFY17 (FY refers to the period April 1 to March 31), very low debt levels marked by comfortable leverage position and debt risk coverage, healthy liquidity profile and positive industry outlook. The ratings also factor in the impact of issuance of import alert by USFDA to DLL in the month of April, 2017.
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.