10 Aug 2023 , 02:12 PM
Result date: 14th August, 2023
Recommendation: Reduce
Target price: Rs. 2,750
Divi’s Laboratories (Divi’s) could register decline in revenue as compared to the year-ago quarter, largely due to a high Molnupiravir-led base. Compared to ~US$60 million sales in Q1FY23, analysts at IIFL Securities estimate nil Molnupiravir sales by Divi’s in the June 2023 quarter. This will lead to a decline in revenue as well as profit numbers for the company as compared to the year-ago quarter.
Excluding Molnupiravir, though overall sales and CSM sales could each grow in mid-double digit over the year-ago quarter.
Sequential performance though is likely to be steady. CSM sales would get a leg up from initial traction from the Gadolinium based contrast media project. Sequentially, EBITDA margin should benefit from stable input cost inflation and discontinuation of high-cost inventory.
The company’s Profit After Tax (PAT) could fall 38% over the year-ago quarter and grow 36% sequentially.
Rs. Million |
June 2023 estimates |
QoQ change |
YoY change |
Revenue |
20,470 |
5% |
(9)% |
EBITDA |
6,243 |
27% |
(26)% |
EBITDA margin |
30.5% |
529 bps |
(706) bps |
Profit After Tax |
4,378 |
36% |
(38)% |
Source: IIFL Research
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