- 03 Feb 2023
- ICICIdirect Research
REPORTS DISMAL SET OF NUMBERS, MISSING OUR EXPECTATIONS ON ALL FRONTS - DIVIS LATEST QUARTERLY RESULT
DIVISLAB - 5952 Change: -74.00 (-1.23 %)Divi’s Lab – Q3FY23 First Cut
(CMP: Rs 2980; MCap: Rs 78,165 crore)
Q3FY23 Earnings Summary
Revenues down 31.5% YoY at Rs 1707.7 crore (I-direct estimate - Rs 1888 crore)
Gross margins declined ~996 bps over the previous year to 56.7%. (I-direct estimate – 64.5%)
EBITDA de-grew 62.8% YoY to Rs 408.3 crore (I-direct estimate - Rs679 crore), EBITDA margins decreased 2010 bps YoY to 23.9 % (I-direct estimate- 36%)
Adjusted net profit declined 37.8% YoY to Rs 306.8 crore (I-direct estimate - Rs541 crore)
View: On the generics front, the management is looking at opportunities from patent expiry in 2023-25 (~US$20 billion addressable market). Overall, we expect the performance in custom synthesis to weigh on sentiments for the next few quarters. The management expects normalcy in custom synthesis over the next few quarters on the back of incremental enquiries.
Impact: Negative