Divis Laboratories (Divis) consolidated sales for Q4FY2020 grew by 9.7% y-o-y to Rs. 1,389 crore and were largely in line with estimates. Both the generic and custom synthesis business revenues grew in double digits. Gross margins were up 160 bps y-o-y to 62.9% aided by improved realisations, due to firmed up API prices and low raw material costs. Due to a surge in employee costs and higher other expenses, operating margins contracted 140 bps y-o-y to 32%. Operating profits at Rs 444.5 crore, grew 4.9% y-o-y and were below estimates of Rs 478 crore. The company reported a forex gain of Rs. 57 crore as against Rs. 7 crore forex loss reported in the...