Divi’s Laboratories (DIVISLAB) Q1 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 2,197 crores in Q1 FY25, up 18% year-over-year, with stable demand for established generics and growth in emerging generics and custom synthesis projects.

• Profit before tax (PBT) for the quarter was INR 604 crores, up from INR 492 crores YoY; PAT stood at INR 430 crores, up from INR 356 crores YoY.

• Maintained operational resilience amid global geopolitical volatility, with proactive supply chain and risk management.

• Greenfield expansion at Unit 3 and Kakinada project progressing, with commercialization expected to begin in FY25.

• Successful USFDA inspection at Unit 2 with only one procedural observation, reflecting strong compliance.

Financial highlights

• Q1 FY25 revenue: INR 2,197 crores (18% YoY growth); PAT: INR 430 crores; PBT: INR 604 crores.

• Standalone total income for Q1 FY25 was INR 2,142 crores; standalone PAT was INR 430 crores.

• Earnings per share (EPS) for Q1 FY25 was INR 16.18 (basic and diluted), up from INR 12.99 in Q1 FY24.

• Forex loss of INR 1 crore vs. gain of INR 3 crores YoY; constant currency growth at 18%.

• Cash on books: INR 4,229 crores; receivables: INR 1,942 crores; inventories: INR 3,108 crores as of June 30, 2024.

Outlook and guidance

• Confident of double-digit growth in both generics and custom synthesis segments.

• New generic APIs to be commercialized from FY26 as patents expire; filings underway.

• Kakinada plant to be ready for commercialization by end FY25, with full benefits expected in two years post regulatory approvals.

• Maintenance CapEx expected at INR 250-300 crores for the year.

• The company continues to focus on its core business of manufacturing APIs, intermediates, and nutraceutical ingredients, with no indication of discontinued operations.