Divi's Laboratories Ltd (BOM:532488) Q4 2025 Earnings Call Highlights: Strong Financial ...
Consolidated Total Income (Q4 FY25): INR 2,671 crores, compared to INR 2,382 crores in the corresponding quarter of the previous year.
Profit Before Tax (Q4 FY25): INR 864 crores, compared to INR 713 crores in the corresponding quarter of the previous year.
Profit After Tax (Q4 FY25): INR 662 crores, compared to INR 538 crores in the corresponding quarter of the previous year.
Forex Gain (Q4 FY25): INR 10 crores, compared to a Forex loss of INR 2 crores in the corresponding quarter of the previous year.
Consolidated Total Income (FY 2024-2025): INR 9,712 crores, compared to INR 8,184 crores in the previous financial year.
Profit Before Tax (FY 2024-2025): INR 2,916 crores, compared to INR 2,163 crores in the previous financial year.
Profit After Tax (FY 2024-2025): INR 2,191 crores, compared to INR 1,600 crores in the previous financial year.
Forex Gain (FY 2024-2025): INR 48 crores, compared to a gain of INR 30 crores in the previous financial year.
Material Consumption: Approximately 40% of sales revenue for both the current and previous financial years.
Constant Currency Growth (FY 2024-2025): 18%, compared to 2% in the previous financial year.
Export Revenue (FY 2024-2025): 88% of total sales revenue, with exports to Europe and the US accounting for 73% of total sales revenue.
Product Mix (Generics to Custom Synthesis - FY 2024-2025): 46% generics and 54% custom synthesis.
Product Mix (Generics to Custom Synthesis - Q4 FY25): 49% generics and 51% custom synthesis.
Nutraceutical Business (FY 2024-2025): INR 781 crores, with INR 205 crores for the quarter ended 31st March 2025.
Assets Capitalized (Q4 FY25): INR 560 crores, with INR 337 crores for the Kakinada project.
Capital Work in Progress (as of 31st March 2025): INR 1,022 crores, with INR 162 crores for the Kakinada project.
Total Amount Spent on Kakinada Project (as of 31st March 2025): INR 1,497 crores.
Cash on Books (as of 31st March 2025): INR 3,696 crores.
Receivables (as of 31st March 2025): INR 2,855 crores.
Inventory (as of 31st March 2025): INR 3,033 crores.
Warning! GuruFocus has detected 6 Warning Sign with BOM:532488.
Release Date: May 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Divi's Laboratories Ltd (BOM:532488) reported a strong financial performance with a consolidated total income of INR 2,671 crores for the current quarter, up from INR 2,382 crores in the same quarter last year.
The company maintained stable volumes in its core generic products despite pricing pressures, showcasing resilience in a competitive market.
Divi's Laboratories Ltd (BOM:532488) signed a long-term manufacturing and supply agreement for an advanced intermediate with a leading global pharmaceutical company, enhancing its presence in the custom synthesis space.
The peptide business is gaining significant traction, with strategic investments in both solid phase and liquid phase synthesis capabilities to meet the rising demand for novel peptide-based therapies.
The company is committed to corporate social responsibility, positively impacting over 1.3 million lives through initiatives in education, healthcare, and rural empowerment.
Divi's Laboratories Ltd (BOM:532488) faces persistent global supply chain constraints and geopolitical uncertainties, impacting transit times and increasing freight costs.
The generic segment continues to experience pricing pressures due to heightened competition, affecting overall margins.
Global transit times have been notably impacted by disruptions in maritime routes, leading to extended lead times for shipments and affecting planning and production costs.
The company anticipates that the benefits from the Kakinada facility's backward integration will take time to reflect in gross margins, indicating a delay in cost savings.
Despite a strong financial performance, the company refrained from providing specific revenue or EBITDA guidance for FY 2026, indicating uncertainty in future projections.
Q: What is driving the growth in the generic business, and how does it affect margins? A: Kiran Divi, CEO & Whole-Time Director, explained that the generic business faces high competition and pricing pressure. Despite this, Divi's Laboratories maintains a dominant market position by introducing new molecules as they come off patent. Nilima Motaparti, Whole-time Director, noted that the margin improvement is primarily due to the product mix, which varies each quarter.
Q: Has the backward integration at the Kakinada facility started impacting gross margins? A: Kiran Divi confirmed that production at Kakinada began in January, and the benefits of backward integration are expected to materialize gradually. The facility is crucial for ensuring a continuous supply of raw materials, which will help manage costs and supply chain disruptions.
Q: How is Divi's Laboratories positioned in the custom synthesis (CS) business, and what is the outlook? A: Kiran Divi emphasized that Divi's Laboratories has been in the CS business since its inception, with continuous RFPs and a strong pipeline. The company is well-positioned in the CS market, with several products in various development stages, and expects continued strength in this segment.
Q: What are the company's plans for peptide capabilities and other modalities like ADCs? A: Kiran Divi stated that Divi's Laboratories is focused on manufacturing peptides for innovators, with investments in solid and liquid phase synthesis. The company is also exploring opportunities in ADCs and other modalities, although these are still in preliminary phases.
Q: Can you provide guidance on revenue growth and CapEx plans for the coming years? A: Nilima Motaparti indicated that Divi's Laboratories aims for consistent double-digit growth. The CapEx for the upcoming financial year will include ongoing projects and maintenance, with an estimated total of INR 1,400 crores plus additional maintenance CapEx.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Alphawave Jumps 23% on Qualcomm's $2.48B Takeover Deal
Alphawave shares surged over 23% on Monday after confirming a $2.48 billion acquisition deal with Qualcomm (QCOM, Financials), the U.S. chipmaker aiming to expand its footprint in high-performance connectivity and data infrastructure. Warning! GuruFocus has detected 5 Warning Signs with QCOM. Under the agreement, Alphawave shareholders can choose between 183 pence in cash or 0.01662 Qualcomm shares per Alphawave share. The transaction will be executed through a UK court-sanctioned scheme and is expected to close in Q1 2026. The deal remains subject to regulatory approvals in the United States, Germany, South Korea, and Canada, as well as foreign direct investment clearance in the United Kingdom. Alphawave's board called the offer a compelling value opportunity. As part of the deal preparation, Alphawave has divested its stake in Chinese joint venture WiseWave, easing potential regulatory hurdles. Jefferies analysts, who upgraded Alphawave to Buy in April, said the sale reduces geopolitical risk and improves the deal's odds. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
Rare Earths for Chips? Inside the High-Stakes US-China Deal That Could Shake Global Markets
Trade talks between the US and China just got interesting again. Delegates met Monday in London, with Washington quietly signaling it might loosen some tech export rules but only if Beijing opens the gate on rare earth shipments. The discussions, led by Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng, included Commerce Secretary Howard Lutnick a move that suggests advanced tech exports are part of the conversation. Kevin Hassett from the White House economic team made it clear: Nvidia's (NASDAQ:NVDA) top-tier AI chips like H2O remain off-limits, but less advanced semiconductors could be up for negotiation. Warning! GuruFocus has detected 4 Warning Signs with NVDA. This isn't a new deal. It's an attempt to revive the shaky framework from Geneva, where both sides paused tariff hikes to cool the temperature. Since then, gaps in licensing clarity and rising political heat including visa crackdowns and sharp drops in trade have muddied the waters. Analysts like Josh Lipsky say the goal is simple: get both sides back to square one, but this time with real terms on paper. Monday's meeting could roll into Tuesday, and with a Trump-Xi call last week helping reboot the dialogue, investors are watching closely. Markets are already responding. Chinese stocks in Hong Kong surged into bull market territory, while US stocks wavered on cautious optimism. Meanwhile, China just posted its worst export numbers to the US in five years, and US manufacturers especially in the Midwest continue to feel the squeeze from tariff-driven uncertainty. The takeaway? London might not deliver a breakthrough, but it could reset the mood. If the two sides walk away with a working blueprint rare earths for select chips it might just be the incremental progress markets have been craving. This article first appeared on GuruFocus.
Yahoo
3 hours ago
- Yahoo
Nvidia CEO Commits to U.K. AI Expansion
Nvidia (NVDA, Financials) CEO Jensen Huang said Monday the United Kingdom is in a "Goldilocks circumstance" for artificial intelligence and confirmed new investment plans in the country's AI sector. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Speaking at an event with Prime Minister Keir Starmer and Investment Minister Poppy Gustafsson, Huang praised the U.K.'s talent and ecosystem but said it lacked sovereign AI infrastructure. You can't do machine learning without a machine, he said. I'm going to invest here. Nvidia announced a new sovereign AI forum and said partners Nscale and Nebius will deploy data centers in Britain using thousands of Nvidia's Blackwell GPUs. The remarks come as Starmer's Labour government advances policies to support domestic AI development, including relaxed planning rules for data centers and a pledge to increase British computing power twenty-fold by 2030. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
