Divi’s Labs Q3 results today: Could there be any fireworks in the scorecard?
The consolidated net profit for the quarter is seen rising 33% YoY to Rs 407.40 crore, according to the average of estimates given by five brokerage firms.
Revenue is likely to grow by 17% YoY to Rs 1,994.20 crore, and Kotak Institutional Equities expects the double-digit growth in the topline to be led by 18% and 35% growth in generics and nutraceuticals, respectively.
On the operational front, earnings before interest, taxes, depreciation and amortization or EBITDA is seen increasing by 38% to Rs 562 crore, the estimates showed.
PhillipCapital expects a 450 basis points YoY and 330 bps sequential expansion in operating margins to 28.4%, with no sales of Covid-19 treatment drug Molnupiravir in the base quarter, and softening inputs as well as operating costs.
Meanwhile, it expects ramp-up in Contrast media supply and recovery in bulk drug demand, leading to a double-digit growth in the overall revenue for the quarter.
While margins will expand sharply both on a YoY and sequential basis, it would still remain substantially lower than its historical run-rate of 34-35%, Nuvama Institutional Equities pointed out.
Update on the pricing of the generic API portfolio, impact on freight costs due to the recent global political turmoil, and updates on the pipeline of iodine and sartan-based products will be the key monitorables.
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