Shares of Divi’s Labs witnessed a 3% surge as the management expressed confidence in achieving double-digit growth in FY25, following the release of its third-quarter financial results. Despite a decline in profit, the company reported robust revenue and margin performance.
During the earnings call, the management highlighted their expectation of double-digit growth in the fiscal year 2025. While the current quarter’s numbers showed a decrease in profit, the strong revenue figures and margin expansion indicate positive momentum for the company.
The pharmaceutical firm reported a 17% year-on-year increase in net profit, reaching Rs 358 crore compared to Rs 306 crore in the corresponding period last fiscal year. Revenue also witnessed a significant uptick, growing nearly 9% to Rs 1,855 crore from Rs 1,708 crore in the year-ago period.
Notably, Divi’s Labs attributed the revival of its custom synthesis (CS) business during the quarter to two major contracts with innovators. This contributed to the expansion of the EBITDA margin to 26.4%, up from 24% in the base period.
As of 11:31 am, Divi’s Labs shares were trading 2.88% higher at ₹3,757.45.
