Divi’s Laboratories reported a robust 46.6% year-on-year increase in profit after tax (PAT) for Q2 FY25, reaching ₹510 crore, driven by growth in its custom synthesis business. The company saw increased demand from both existing and new customers in this segment. In comparison, PAT stood at ₹348 crore in the same quarter last year.
As of 9:55 am the shares were trading 0.35% lower at ₹5,928.95 on NSE
- Revenue: Revenue for the quarter rose 22.5% to ₹2,444 crore, up from ₹1,995 crore in Q2 FY24. Approximately 87% of this revenue came from exports, with the US and Europe together contributing around 71%.
- Forex Gains: Divi’s Laboratories recorded a forex gain of ₹29 crore in Q2 FY25, compared to a gain of ₹11 crore in Q2 FY24.
- EBITDA: The company’s EBITDA came in at ₹716 crore, surpassing analyst expectations of ₹670 crore.
- Operating Profit Margin: The operating profit margin improved by 600 basis points year-over-year, reaching 31%.
- Business Composition: The generic business constitutes 49% of the company’s revenue, while the remainder comes from custom synthesis and nutraceuticals. Divi’s noted ongoing pricing pressure in the generic segment.
With ₹3,602 crore in cash reserves, Divi’s Laboratories continues to maintain a strong financial position.
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