Divi's Laboratories Ltd (BOM:532488) Q3 2025 Earnings Call Highlights: Strong Revenue Growth ...

In This Article:

  • Consolidated Total Income (Q3 FY25): INR 2,401 crores, up from INR 1,915 crores in Q3 FY24.

  • Profit Before Tax (Q3 FY25): INR 726 crores, compared to INR 489 crores in Q3 FY24.

  • Profit After Tax (Q3 FY25): INR 589 crores, up from INR 358 crores in Q3 FY24.

  • Consolidated Total Income (9M FY25): INR 7,041 crores, compared to INR 5,804 crores in 9M FY24.

  • Profit Before Tax (9M FY25): INR 2,052 crores, compared to INR 1,450 crores in 9M FY24.

  • Profit After Tax (9M FY25): INR 1,529 crores, compared to INR 1,062 crores in 9M FY24.

  • Material Consumption: 40% of sales revenue for 9M FY25.

  • ForEx Gain (9M FY25): INR 38 crores, compared to INR 32 crores in 9M FY24.

  • Constant Currency Growth (9M FY25): 22%, compared to negative 10% in 9M FY24.

  • Exports (9M FY25): 87% of total sales revenue.

  • Product Mix (9M FY25): Generics 48%, Custom Synthesis 52%.

  • Nutraceutical Business (9M FY25): INR 576 crores; INR 170 crores for Q3 FY25.

  • Capitalized Assets (Q3 FY25): INR 433 crores, including INR 417 crores for Kakinada project.

  • Capital Work in Progress (as of Dec 31, 2024): INR 1,157 crores, with INR 745 crores for Kakinada project.

  • Cash on Books (as of Dec 31, 2024): INR 3,659 crores.

  • Receivables (as of Dec 31, 2024): INR 2,366 crores.

  • Inventories (as of Dec 31, 2024): INR 2,986 crores.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Divi's Laboratories Ltd (BOM:532488) reported a significant increase in consolidated total income for Q3 FY25, reaching INR2,401 crores compared to INR1,915 crores in the same quarter of the previous year.

  • The company successfully commenced commercial operations at its Phase I greenfield project at Unit 3 in Kakinada, enhancing backward integration and manufacturing capabilities.

  • Divi's Laboratories Ltd (BOM:532488) maintained stability in its generic business despite ongoing industry price pressures, with expectations for easing pressures and future growth driven by patent expirations.

  • The nutraceutical division continues to gain market share, with efforts in production efficiencies and new product introductions aligning with long-term growth strategies.

  • The company has a strong cash position with INR3,659 crores on books, supporting its strategic investments and operational efficiency initiatives.

Negative Points

  • Divi's Laboratories Ltd (BOM:532488) faces ongoing price pressures in the generic segment, impacting overall revenue growth despite volume increases.

  • Logistical challenges, including disruptions in the Red Sea and port congestion, led to increased costs and delays, although the company managed to mitigate impacts through strategic actions.

  • The company is experiencing a gradual easing of supply chain pressures, but geopolitical and shipping conditions continue to pose risks.

  • Despite a strong pipeline, the timing of contributions from new projects in the custom synthesis segment is uncertain due to dependency on regulatory approvals.

  • The nutraceutical business has seen stagnated momentum due to capacity constraints, although future growth is anticipated with the Kakinada expansion.