Divis Labs's Q1 net profit surges 21% to ₹430 crore
Divis Laboratories, a leading pharmaceutical company, has reported a 21% year-on-year (YoY) increase in its net profit for the first quarter of FY25. The firm's net profit reached ₹430 crore, falling short of the estimated ₹471 crore as projected by a Moneycontrol poll involving nine brokerages. Despite this shortfall, the company's revenue from operations experienced substantial growth.
Significant revenue growth reported
Divis Labs's revenue from operations witnessed a significant 19% increase, rising from ₹1,778 crore to ₹2,118 crore. This exceeded the anticipated revenue growth of 16.5% to ₹2,129 crore as per the Moneycontrol poll. The company's EBITDA for Q1 stood at ₹622 crore, marking a 23% rise from ₹504 crore in the previous fiscal year (FY).
Margin improvement and total income increase
The pharmaceutical giant also reported an improved margin of 29.4%, up from last year's figure of 28.3%. On a consolidated basis, the total income for Q1 was ₹2,197 crore, marking an increase from ₹1,859 crore in the same quarter last year. However, the company did report a forex loss of ₹1 crore for this quarter.
Divis Labs's shares rise despite missing profit estimates
Divis Laboratories's shares closed at ₹4,973.05 on the National Stock Exchange (NSE) on Friday, marking a 1.74% increase from the previous closing price. The company's margin profile had been distorted in the past year, due to industry headwinds and absence of high-margin drug Molnupiravir. Therefore, the focus will be on Divis's guidance for EBITDA margin for FY25.
