Latest news with #Divi'sLaboratoriesLtd
Mint
06-08-2025
- Business
- Mint
Divi's Laboratories' June-quarter profit, margin miss estimates
Contract development and manufacturing organization (CDMO) Divi's Laboratories Ltd's June-quarter earnings missed estimates due to pricing pressure on its generics business. While the Hyderabad-based drugmaker's revenue from operations rose 13.7% year-on-year to ₹ 2,410 crore, its net profit jumped 26.7% to ₹ 545 crore. On a standalone basis, its net profit stood at ₹ 557 crore in the first quarter of 2025-26. A poll of 18 brokerages by Bloomberg had pegged the revenue at ₹ 2,462 crore and net profit at ₹ 582.7 crore. The company's Ebitda increased 17.2% on-year to ₹ 729 crore. Its Ebitda margin expanded slightly to 30.25% as against 29.37% a year ago. Ebitda is earnings before interest, taxes, depreciation and amortization. Brokerages Kotak Securities and Nuvama had pegged the company's Ebitda margin to expand to 33-34% in the quarter under review. Its generics business generated 47% of its overall revenue, and the custom synthesis business generated the rest. Divi's manufactures drugs for generic players as well as innovators. Custom synthesis refers to the production of specific chemical compounds, such as novel APIs or intermediates, tailored to a client's needs. APIs are core components of a medicine responsible for making its treatment effective. Persistent pricing pressure in global markets, particularly the US has affected generic drugmakers and weighed on Divi's as well. The company's management, however, told investors in an earnings call on Wednesday that the firm continues to be resilient on account of its strong backward integration. Divi's has seen increased interest from global innovators as well, the company's management said. As innovators look to derisk and diversify supply chains away from China, Indian CDMO giants like Divi's are poised to gain. The company has seen a steady increase in requests for proposals. In the last quarter of 2024-25, the company announced a long-term manufacturing and supply agreement with a leading global pharmaceutical company for which it is investing ₹ 650-750 crore. In January, it commenced commercial operations at Unit 3 of its Kakinada facility. This year, the company is planning to execute three capex programmes with an estimated expenditure of ₹ 2,000 crore, chief executive Kiran Divi told investors. Divi's Laboratories shares closed at ₹ 6,183 on National Stock Exchange on Wednesday, down 3.53% as the company's earnings missed estimates.
Yahoo
20-05-2025
- Business
- Yahoo
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.
Mint
02-05-2025
- Business
- Mint
Best stock recommendations today: MarketSmith India's top picks for 2 May
The Nifty 50 experienced volatility on 30 April due to escalated geopolitical tensions, raising investor caution and pushing the India VIX up as much as 6.5%. Additionally, the weekly F&O expiry was advanced due to a market holiday on 1 May, adding to the choppiness. Profit booking in the auto and banking sectors, alongside gains in realty and pharma, contributed to the mixed market movement. Technical resistance near 24,400 capped gains, suggesting potential near-term consolidation. Buy: Divi's Laboratories Ltd (Current price: ₹ 6,087) Buy: Bharti Airtel (Current price: ₹ 1,864) The Nifty 50 traded with increased volatility on 30 April, but managed to hold above the 24,300 mark, maintaining its broader uptrend. Despite sharp intraday fluctuations, the index remained resilient, reflecting underlying bullish sentiment. Another small-bodied 'doji' candle formed on the daily chart, indicating ongoing indecision as profit-booking emerged at higher levels. Barring realty and pharma, all major sectoral indices closed in the red, with banking, energy, IT, and metals the biggest losers. The advance-decline ratio turned negative and settled at 1:3. Technically, the Nifty continued to trade comfortably above its 200-DMA. The RSI remains in the bullish zone, currently around 62. However, its slope turned downward. The MACD is trending above the central line with a positive crossover. Both the weekly RSI and MACD are trending upward, indicating continued bullish momentum. According to O'Neil's methodology of market direction, the Nifty 50 transitioned from a "Rally Attempt" to a 'Confirmed Uptrend." Despite the volatility, the index displayed resilience and managed to close on a flat note. Intraday pullbacks from higher levels highlight persistent supply pressure, signaling the need for near-term caution. Technically, the index struggled to sustain above 24,400. A decisive breakout above this range could open the path toward 24,700-24,900. On the downside, strong support is seen around 24,000-23,900. A breakdown below this could lead to increased selling pressure. On Wednesday, the Nifty Bank index witnessed a volatile session, closing at 55,087, down 0.55%. The index traded within a narrow range, forming a lower-high and lower-low on the daily chart, indicating continued profit-booking for the second consecutive day and forming another bearish candle on the daily chart. In addition to the Nifty Bank, both the FINNIFTY and the Nifty PSU Bank closed in the red. Within the banking and financial space, PSU banks emerged as the biggest losers of the day. From a technical standpoint, the Nifty Bank continues to trade above all its key moving averages and remains in a consolidation phase. The RSI on the daily chart is still in the positive zone. However, its slope turned downward on Wednesday, indicating waning momentum. Similarly, the MACD is trending above the central line with a positive crossover, but it is now converging toward its signal line, suggesting a potential loss of bullish strength. According to O'Neil's methodology of market direction, the Nifty Bank transitioned from an "Uptrend Under Pressure" to a 'Confirmed Uptrend." The Nifty Bank maintains a positive outlook while consolidating within a defined range. The short-term trend remains bullish as long as the index holds above the key support zone of 54,500–54,000. Immediate resistance is placed at 56,000, and a breakout above this level could lead to a rally toward 57,500–58,000. The bullish trend is expected to persist as long as the index remains above 54,000. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website . Trade name: William O'Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint . We advise investors to check with certified experts before making any investment decisions.
