Q1FY23 Preview: Divi's Laboratories: Revenue seen at Rs23,691 million, PAT at Rs 7,311 million

11 Aug 2022 , 08:27 AM

Result date: 12^th August, 2022
Recommendation: Reduce
Target price: Rs3,400
Source: IIFL Research

Divi’s Laboratories could witness moderation in sales growth (over the year-ago quarter) on the back of declining gains from the Molnupiravir opportunity. Revenue is likely to grow 20.8% over the year-ago quarter.

Lower operating leverage could have some bearing on overall profitability. EBITDA is likely to grow 17.4% while Profit After Tax or PAT growth is estimated at 27%.

Important management insights to watch out for:

• Update on the capex plans, including Kakinada project
• Details about new molecule addition in the API space
• Update on additional contracts in custom synthesis segment
• Outlook for further Molnupiravir supplies
• Progress towards manufacturing 10 new molecules

Rs. Million	June 2022 estimates	YoY change
Revenue	23,691	20.8%
EBITDA	9,993	17.4%
Profit After Tax	7,311	27.0%

Source: Brokerage reports