{"id":127343,"date":"2022-02-14T06:54:49","date_gmt":"2022-02-14T11:54:49","guid":{"rendered":"https:\/\/44.250.171.167\/?p=127343"},"modified":"2022-10-05T06:10:43","modified_gmt":"2022-10-05T10:10:43","slug":"divis-laboratories-ltd-q3-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy22-earnings-conference-call-insights\/","title":{"rendered":"Divi&#8217;s Laboratories Ltd Q3 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Divi&#039;s Laboratories Ltd Q3 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/E7EoiAKzMn0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Divi&#8217;s Laboratories Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/DIVISLAB\/\">DIVISLAB<\/a>) Q3 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>The company capitalized INR196 crores in 3Q22 and anticipate another INR100 crore capex before end of FY22.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Tushar Manudhane from Motilal Oswal asked if there was any one-off for the sharp increase in revenue sequentially. Murali Divi MD said that it\u2019s not one-off. The company has several projects that it has been working on and one of the projects has taken little faster.<\/li>\n<\/ul>\n<ul>\n<li>Tushar Manudhane from Motilal Oswal asked if the backward integration that helped in the raw material side improving gross margin sustainable in the near to medium term. Murali Divi MD answered that the raw material backward integration is a strategy not only for the sake of saving some cost but also from the point of assurance of supply from the generic and custom synthesis.<\/li>\n<\/ul>\n<ul>\n<li>Alankar Garude with Kotak asked that given the big COVID upside in FY22 numbers, how the growth should be looked at over the next couple of years. Murali Divi MD said that COVID drugs may be short lived or it may back soon. Murali added that it\u2019s not the order book, it is how quickly a new product can be accommodated, scaled up and supplied is the order of the day today.<\/li>\n<\/ul>\n<ul>\n<li>Alankar Garude with Kotak also enquired about capacity and how the company is placed for the next few years. Murali Divi MD replied that on capacity, the company has never had an issue as it always invest ahead of time. DIVISLAB always keeps two or three blocks ready to take products. The company does not build product specific buildings, it always builds multi-purpose blocks; any product could be produced in those blocks.<\/li>\n<\/ul>\n<ul>\n<li>Shyam Srinivasan Goldman Sachs asks about the reason generic API is declining, while using the 43, 57 ratio for the nine month and backing out the generic API. Murali Divi MD said that the company does not believe the generic business has declined. The company did not lose any customer or volume.<\/li>\n<\/ul>\n<ul>\n<li>Surya Patra from PhillipCapital enquired that in the next three years what growth company is expecting in custom synthesis and the generic growth and capex. Murali Divi MD answered that in terms of investing, the company has funds in the bank and doesn\u2019t need to borrow or worry.<\/li>\n<\/ul>\n<ul>\n<li>Surya Patra from PhillipCapital asked about the opportunity from the China supply chain replacement, particularly on the custom synthesis side or the intermediate for the innovative molecule. Murali Divi MD said that India has lot to gain the next five years in the API industry. The company added that it\u2019s geared up to take all the opportunities, both from the big pharma side and the generic side.<\/li>\n<\/ul>\n<ul>\n<li>Chirag Dagli of DSP Mutual Fund queried that on the custom synthesis, typically 4Q is the strongest for the company and if it will be same for 4Q22. Murali Divi MD replied that the company thinks it looks good, opportunities are good, validations of several projects are underway.<\/li>\n<\/ul>\n<ul>\n<li>Damayanti Kerai of HSBC Securities asked about the company\u2019s capex plan for the next two years. Murali Divi MD replied that it may be anywhere from INR1,000 crores to INR2,000 crores, based on the company\u2019s investments into the greenfield and brownfield projects.<\/li>\n<\/ul>\n<ul>\n<li>Damayanti Kerai of HSBC Securities also asked about maintenance capex for the company per year. Murali Divi MD said that per year it\u2019s about INR100 crores.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q3 FY22 Earnings Concall Management Update: The company capitalized INR196 crores in 3Q22 and anticipate another INR100 crore capex before end of FY22. Q&amp;A Highlights: Tushar Manudhane from Motilal Oswal asked if there was any one-off for the sharp increase in revenue sequentially. Murali Divi MD said that [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747],"tags":[1115],"class_list":["post-127343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129961,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":127343,"position":0},"title":"Divi&#8217;s Laboratories Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 24, 2022","format":false,"excerpt":"https:\/\/youtu.be\/MLu1npKFqZg Key highlights from Divi's Laboratories Ltd (DIVISLAB) Q4 FY22 Earnings Concall Management Update: DIVISLAB said it reached milestone revenue for FY22 of $1 billion with decent profitability despite the hurdles faced during the pandemic. Q&A Highlights: Tushar Manudhane of Motilal Oswal asked if the company\u2019s steady-state growth of 13-15%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":133197,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":127343,"position":1},"title":"Divi&#8217;s Laboratories Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 15, 2022","format":false,"excerpt":"https:\/\/youtu.be\/EPaxfKgyoZQ Key highlights from Divi's Laboratories Ltd (DIVISLAB) Q1 FY23 Earnings Concall Q&A Highlights: Tushar Manudhane from Motilal Oswal asked about the stable sales in the generic side for the past 3 quarters, if capacity expansion will increase sales in coming quarters. Murali Divi MD said that with the expansion,\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":147097,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":127343,"position":2},"title":"Divi&#8217;s Laboratories Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 23, 2023","format":false,"excerpt":"Key highlights from Divi's Laboratories Ltd (DIVISLAB) Q4 FY23 Earnings Concall Q&A Highlights: [00:11:30] Tushar Manudhane from Motilal Oswal asked if backward integration and softening raw material prices lead to a new normal of 57-58% GM. Murali Divi MD replied that RM prices are decreasing, stabilizing, and expected to continue\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":135808,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":127343,"position":3},"title":"Divi&#8217;s Laboratories Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 8, 2022","format":false,"excerpt":"https:\/\/youtu.be\/e1-tljnhSVM Key highlights from Divi's Laboratories Ltd (DIVISLAB) Q2 FY23 Earnings Concall Management Update: [00:06:48] DIVISLAB stated that though global logistics scenario has improved and is seeing receding sea and air-freight costs in 2Q23, minor disruptions stemming from issues like manpower shortages continues. [00:07:12] DIVISLAB also said that prices of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126055,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-divislab-q2-fy22-earnings-concall-transcript\/","url_meta":{"origin":127343,"position":4},"title":"Divi&#8217;s Laboratories Ltd (DIVISLAB) Q2 FY22 Earnings Concall Transcript","author":"Sahil","date":"November 6, 2021","format":false,"excerpt":"Divi's Laboratories Ltd\u00a0(NSE:DIVISLAB) Q2 FY22 Earnings Concall dated Nov. 06, 2021. Corporate Participants: M. Satish Choudhury -- Company Secretary & Compliance Officer Murali K. Divi -- Managing Director Nilima Prasad Divi -- Whole-Time Director (Commercial) Analysts: Tushar Manudhane -- Motilal Oswal Financial Services -- Analyst Shyam Srinivasan -- Goldman Sachs\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130429,"url":"https:\/\/alphastreet.com\/india\/piramal-enterprises-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":127343,"position":5},"title":"Piramal Enterprises Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 1, 2022","format":false,"excerpt":"Key highlights from Piramal Enterprises Ltd (PEL) Q4 FY22 Earnings Concall Management Update: Over the next five years, PEL aspire to achieve a retail wholesale mix of two-thirds retail and one-third wholesale. PEL said it wants to double the AUM of the Financial Services business from FY22. PEL will also\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/127343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=127343"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/127343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=127343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=127343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=127343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}