Divi's Laboratories Q1 Results: Profit Fell By Half Missing Estimates
The company's first-quarter profit declined 49% YoY to Rs 356 crore, missing Bloomberg's estimate of Rs 407 crore.
Divi's Laboratories Ltd.'s first quarter profit fell by half, missing analysts' estimates.
The company's profit declined 49% year-on-year to Rs 356 crore in the quarter ended June, according to an exchange filing on Monday. That compares with the Rs 407 crore consensus estimate of analysts tracked by Bloomberg. Sequentially, profit rose 11%.
Divi's Laboratories Q1 FY24 Highlights (Consolidated, YoY)
Revenue fell 21% to Rs 1,778 crore (Bloomberg estimate: Rs 1,995 crore).
Operating profit declined 41% to Rs 504 crore (Bloomberg estimate: Rs 561 crore).
Operating margin was at 28.3% versus 37.6% (Bloomberg estimate: 28.1%).
In the earnings call, the company said that the generic to custom synthesis revenue contribution for the quarter was in the ratio of 60:40%. Revenue grew 29% on a constant currency basis and 86% of revenue were from exports. Of the exports, 67% was from the U.S. and Europe, while the balance was from other regions.
Other Concall Highlights
Raw material prices are seeing a downward trend and continued stabilisation is expected.
The company said that it is witnessing reduction in shipping costs.
They are focusing on optimising inventory level and have reduced dependence on China for inputs as compared with last year.
The company has a cash balance of Rs 4,208 crore as on June 30.
With regards to capex, Rs 33 crore has been capitalised and Rs 389 crore is capital work in progress, of which Rs 130 crore is toward the Kakinada project.
The management said that they are expecting a stable 35%-40% Ebidta margin.
Shares of Divi's Laboratories were trading 0.94% higher at Rs 3,710.85 apiece on the BSE after the results were announced, as compared with a 0.24% fall in the benchmark Sensex at 1:06 p.m.
