Divi’s Labs’ Q1FY25 Results
Divi’s Labs’ revenue increased 18% YoY
- 06 Aug 2024
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- Divi’s Labs reported an 8% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended June (Q1FY25). On a year-on-year (YoY) basis, it witnessed a growth of 18%.
- Its expenses for the quarter were down by 5% QoQ and up 17% YoY.
- The net profit decreased 20% QoQ and was up 21% YoY.
- The earnings per share (EPS) of Divi’s Laboratories stood at 16.2 during Q1FY25
Divi’s Labs’ Financial Statements for Q1FY25:
| (₹ crores) | Q1FY24 | Q4FY24 | Q1FY25 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total income | 1,859 | 2,382 | 2,197 | -8% | 18% |
Total expenses | 1,367 | 1,669 | 1,593 | -5% | 17% |
Profit before tax | 492 | 713 | 604 | -15% | 23% |
Tax | 136 | 175 | 174 | -1% | 28% |
Profit after tax | 356 | 538 | 430 | -20% | 21% |
Earnings per share | 13.4 | 20.3 | 16.2 |
Financials:
- Total Income: ₹2,197 crores, up 18% YoY from ₹1,859 crores in Q1FY24.
- Net Profit: ₹430 crores, up 21% YoY from ₹356 crores.
- EBITDA: ₹622 crores, up 23% YoY from ₹504 crores.
- EBITDA Margins: EBITDA margin at 29.4%, up from 28.3% YoY.
- Earnings Per Share (EPS): ₹16.2, compared to ₹13.4 in Q1FY24.
Q1FY25 Conference Call Highlights:
Generics
- API business saw double-digit growth in Q1FY25.
- Key products like naproxen, gabapentin, and dexamethasone are experiencing pricing pressure. Divi’s remains a leading supplier for naproxen sodium and dexamethasone, with growth rates of 2-5%.
- New product patents are expiring between FY25-27; plans exist to commercialise generics like ticagrelor in FY26.
- Volume growth of one sartan product is at 60%.
Kakinada Plant
- Construction of Unit 3 is on track, with Phase 1 (200 acres) expected to be completed by FY25. Regulatory approval and product validation will follow, with commercial sales projected to begin thereafter.
- Phase 2 construction may commence after reaching 90% utilisation of Phase 1. Current capacity supports CS projects in clinical phases 2 & 3; additional capacity may be needed for large-scale product commercialisation.
Contrast Media
- Development is underway for both iodine-based products (for CT scans) and Gadolinium (for MRI).
- Innovators dominate 85-90% of the contrast media market; generics hold a 10-15% share.
- Iodine-based products are provided to both generics and innovators; in regulated markets, only innovators are served.
- Several new Gadolinium compounds in Phase 3 are under development for targeting specific body scans.
Custom Synthesis (CS)
- Current manufacturing includes building blocks GLP-1, GLP-2, and other peptide products. Expansion includes two new 500-litre reactors to enhance commercial batch production.
- Forward integration plans include fragment manufacturing for GLP products at Unit 1 in Hyderabad, with capabilities for both solid and liquid fragments.
- Several molecules are in Phase 2 and 3, showing promising growth potential in existing commercial products.
- The ₹7 billion project with an innovator is on track and in the investment phase.
Data Source: BSE, Company announcements
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