Divi’s Laboratories Q1 Results: Stock falls after profit, margins miss estimates

Divi’s Laboratories Ltd. reported a 14% year-on-year growth in revenue at ₹2,410 crore, compared to ₹2,118 crore in the year-ago quarter. However, the figure was below the CNBC-TV18 poll estimate of ₹2,437 crore.Net profit rose 27% YoY to ₹545 crore, from ₹430 crore last year. This too was below street estimates of ₹573.25 crore.

Operating profit (EBITDA) increased 16.3% to ₹756 crore, compared to ₹650 crore in the same quarter last year, but missed the CNBC-TV18 estimate of ₹794.8 crore.
EBITDA margin expanded by 70 basis points to 31.4%, up from 30.7% a year ago, but still lower than the poll estimate of 32.6%.Investors will focus on management commentary regarding:

– MSN’s patent litigation win related to cardiac drug Entresto

– Progress on long-term supply agreements

– Opportunities in the GLP-1 space

Shares of Divi’s Laboratories are off the day’s high, currently trading 3.3% lower at ₹6,208.50. The stock has declined 10% in the last one month.