Divis Labs Q1 Results: Net profit rises 21% to Rs 430 crore, misses estimates

ivi's Laboratories' shares closed at Rs 4,973.05 on the NSE on Friday

Pharma giant Divis Labs on August 3, declared 21 percent year-on-year rise in net profit to Rs 430 crore in the first quarter of FY25. Its revenue from operations grew 19 percent to Rs 2,118 crore, up from Rs 1,778 crore. The company's net profit in the same quarter last year stood at Rs 356 crore.

According to a Moneycontrol poll of nine brokerages, Divi's Labs' revenue was pegged to grow 16.5 percent to Rs 2,129 crore. Net profit was expected to increase over 32 percent to Rs 471 crore as against Rs 356 crore in the year-ago period.

The low base of the last fiscal and strong sales in the custom synthesis segment helped drive profit and revenue growth for Divis.

For the first quarter, the company reported EBITDA of Rs 622 crore, reflecting a 23 percent increase from Rs 504 crore in the previous fiscal year. The company achieved a margin of 29.4 percent, compared to 28.3 percent last year.

During the quarter, Divi's Laboratories reported a total income of Rs 2,197 crore on a consolidated basis, up from Rs 1,859 crore in the same quarter last year. Profit Before Tax (PBT) for the current quarter was Rs 604 crore, compared to Rs 492 crore in the corresponding quarter of the previous year and Rs 713 crore in the fourth quarter. The company also reported a forex loss of Rs 1 crore for the current quarter, compared to a gain of Rs 3 crore in the same period last year.

Given the distorted margin profile of the company in the past year due to industry headwinds and the absence of the high-margin drug Molnupiravir, the focus will be on Divi's guidance for EBITDA margin for FY25.

In addition, any outlook from the management on growth triggers for the company's API business will also remain another key monitorable.

Divi's Laboratories' shares closed at Rs 4,973.05 on the NSE on Friday, higher by 1.74 percent from the previous closing price.

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