One of the pharma stocks engaged in the production of active pharmaceutical ingredients (APIs), intermediates, and nutraceuticals. The stock has jumped 4.90 percent after the company reported strong December quarterly results. The company’s net profit and revenue have increased by 64.52 percent YoY and 25.01 percent YoY, respectively, in Q3 FY25.
Stock Price Movement:
In Monday’s trading session, Divis Laboratories Limited’s share jumped to an intraday high of 4.90 percent from the previous close of Rs. 5,622.30. The stock opened at Rs. 5,601.75 and is currently trading at Rs. 5,895, with a high of Rs. 5,898 and a low of Rs. 5,475. The market capitalization now stands at approximately Rs. 1,55,033.65 crore.
Q3 FY25 Result Walkthrough:
Coming into the quarterly results of Divis Laboratories Limited, the company’s consolidated revenue from operations increased by 25.01 percent YOY, from Rs. 1855 crore in Q3 FY24 to Rs. 2319 crore in Q3 FY25, and dropped slightly by 0.82 percent QoQ from Rs. 2338 crore in Q2 FY25.
In Q3 FY25, Divis Laboratories Limited’s consolidated net profit increased by 64.52 percent YOY, reaching Rs. 589 crore compared to Rs. 358 crore during the same period last year. As compared to Q2 FY25, the net profit has increased by 15.49 percent, from Rs. 510 crore.
The basic earnings per share increased by 64.44 percent and stood at Rs 22.20 as against Rs 13.50 recorded in the same quarter in the previous year 2024.
Future Outlook:
The company expects a strong pipeline of generic products to contribute to revenues from 2026. It will continue focusing on innovation and advanced technologies, such as continuous flow chemistry, to improve efficiency and drive future growth opportunities.
Business operation:
The company successfully completed a USFDA inspection at its Unit II facility, demonstrating its commitment to quality and regulatory standards. Expansion at Unit-III is on track, with phase-wise production expected to begin in December 2024.
The company’s total capital expenditure for the year is projected at around Rs. 1,600 crores, supported by ongoing investments in Kakinada and other projects, driving future growth and development.
Written By – Nikhil Naik
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