One of the biggest names in the pharmaceutical sector, Divis Laboratories, said that its net profit for the first quarter of FY25 increased by 21% year over year to Rs 430 crore. Compared to the net profit of Rs 356 crore recorded in the same quarter of the previous fiscal year, this is a significant increase. Significant rise was also seen in the company’s operating revenue, which increased by 19% to Rs 2,118 crore from Rs 1,778 crore in the same period the previous year.
Although marginally less than anticipated, Divis Labs’ performance surpassed expectations based on a Moneycontrol survey of nine brokerages. According to the poll, revenue would rise by 16.5% to Rs 2,129 crore, while net profit would jump by 32% to Rs 471 crore. The company’s actual performance is nevertheless strong even though these forecasts were not met. This is mainly because of the strong sales in the custom synthesis section and the low base effect from the previous fiscal year.
Divis Labs reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 622 crore for the first quarter of this year, up 23 percent from Rs 504 crore during the same period last year. This enhancement is a result of the business’s efficient operations and skillful cost control. In addition, the EBITDA margin increased, going from 28.3 percent to 29.4 percent in the preceding fiscal year. The company’s capacity to boost profitability through operational leverage and scale is demonstrated by this increase in margin.
Consolidated revenue for the company for the quarter was Rs 2,197 crore, compared to Rs 1,859 crore during the same period previous year. Divis Labs’ capacity to seize market openings and broaden its revenue base is demonstrated by this expansion. During the quarter, Profit Before Tax (PBT) was Rs 604 crore, up from Rs 492 crore in the same quarter of the previous fiscal year. Nevertheless, this is a drop from the Rs 713 crore recorded in the fourth quarter, indicating some fluctuations in the performance of the quarter.
In addition, Divis Laboratories disclosed a 1 crore rupee forex loss for the current quarter as opposed to a 3 crore rupee gain during the same period previous year. Even if it is a small loss, this transaction shows how currency swings affect the company’s finances, which is a regular problem for businesses who conduct extensive foreign business.
The robust performance of Divis Laboratories in the first quarter of FY25, marked by notable increases in net profit and revenue, highlights the company’s adaptability and strategic focus on high-growth markets like bespoke synthesis. The increase in EBITDA and margins serves as another evidence of its operational effectiveness and capacity to take advantage of scale to increase profitability. Despite the fact that the company’s results fell short of the more optimistic forecasts of the market, they nonetheless show strong growth and a promising picture for the upcoming quarters. Divis Labs is still well-positioned for long-term success in the pharmaceutical industry, despite the little forex loss, which highlights the necessity for constant attention to controlling currency risks.
SOURCE:
MONEY CONTROL.COM
