{"id":129961,"date":"2022-05-24T03:40:20","date_gmt":"2022-05-24T07:40:20","guid":{"rendered":"https:\/\/44.250.171.167\/?p=129961"},"modified":"2022-10-06T03:21:13","modified_gmt":"2022-10-06T07:21:13","slug":"divis-laboratories-ltd-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"Divi&#8217;s Laboratories Ltd Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Divi&#039;s Laboratories Ltd Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/MLu1npKFqZg?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>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>DIVISLAB said it reached milestone revenue for FY22 of $1 billion with decent profitability despite the hurdles faced during the pandemic.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Tushar Manudhane of Motilal Oswal asked if the company\u2019s steady-state growth of 13-15% would continue in FY23. Murali Divi MD answered that the company is fulfilling all contracts and the future is good, but with so many things happening in the world on various fronts it is very difficult to give projections at this moment.<\/li>\n<\/ul>\n<ul>\n<li>Tushar Manudhane from Motilal Oswal also enquired about the sharp increase in receivables over the past six months. Murali Divi MD said that there are no bad receivables. All receivables are as per the contract. And what is reflecting is the increase in sales that has happened in the fourth quarter. That&#8217;s what is reflecting.<\/li>\n<\/ul>\n<ul>\n<li>Tushar Manudhane of Motilal Oswal queried if the Kakinada&#8217;s capex has started. Murali Divi MD answered that the company is still waiting for the government clearance to go ahead, though DIVISLAB has all the licenses received. And as soon it comes, the company will be investing.<\/li>\n<\/ul>\n<ul>\n<li>Neha Manpuria with Bank of America asked about the company\u2019s current capacity utilization. Murali Divi MD answered that the capacity is around 80% right now, and it varies QonQ 80%, 85%.DIVISLAB also said it has two buildings that are ready now to take up new products constructed already.<\/li>\n<\/ul>\n<ul>\n<li>Surya Patra with PhillipCapital asked about how the antiviral drug opportunity will be panning out throughout CY22 for the industry and DIVISLAB in FY23. Murali Divi MD said it\u2019s difficult to quantify, but added that the company will not lose any opportunities that come to it from the big pharmas.<\/li>\n<\/ul>\n<ul>\n<li>Jiten Doshi from ENAM Asset asked about the sustainable growth rates and margins in the next five years. Murali Divi MD said the company expects good growth, not in the next one, two years; but in five years.<\/li>\n<\/ul>\n<ul>\n<li>Jiten Doshi of ENAM Asset also asked if in the next five years the company would be spending about INR7,000-8,000 crores of capex to accomplish DIVISLAB\u2019s vision. Murali Divi MD replied that the plan in the next 2-3 years is to spend about INR2,000-3,000 crores. But if opportunity requires, the company said, it won&#8217;t mind spending INR4,000-5,000 crores because DIVISLAB\u2019s reserves do permit such expansion.<\/li>\n<\/ul>\n<ul>\n<li>Shyam Srinivasan from Goldman Sachs asked about custom vs. generic vs. nutraceutical, which is the largest product and total sales contribution to total sales for FY22. Murali Divi MD clarified that it don&#8217;t disclose by product, by company, or by customer. The company\u2019s wishful thinking is that it maintains 50%-50%.<\/li>\n<\/ul>\n<ul>\n<li>Cyndrella with JM Financial enquired that looking at the INR2,800 crore inventory number, should it be considered as the visibility for growth in FY23. Murali Divi MD answered that the inventory related to the actual products DIVISLAB is manufacturing, there is no risk to the inventory at all.<\/li>\n<\/ul>\n<ul>\n<li>Cyndrella of JM Financial also asked if there is any risk to the 44% EBITDA margin that DIVISLAB envisages? Murali Divi MD clarified that the company doesn\u2019t see any risks on the EBITDA. The bottom line depends on the company\u2019s efficiency and productivity because of the process development work. And it varies, but the company will try to maintain it at 40%.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Divi&#8217;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&amp;A Highlights: Tushar Manudhane of Motilal Oswal asked if the company\u2019s steady-state growth of 13-15% would continue in FY23. Murali Divi [&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-129961","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":127343,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":129961,"position":0},"title":"Divi&#8217;s Laboratories Ltd Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"February 14, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=E7EoiAKzMn0 Key highlights from Divi'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&A Highlights: Tushar Manudhane from Motilal Oswal asked if there was any one-off for the sharp increase in revenue\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":129961,"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":129961,"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":129961,"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":130211,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-divislab-q4-fy22-earnings-concall-transcript\/","url_meta":{"origin":129961,"position":4},"title":"Divi&#8217;s Laboratories Ltd. (DIVISLAB) Q4 FY22 Earnings Concall Transcript","author":"Staff Correspondent","date":"May 26, 2022","format":false,"excerpt":"Divi's Laboratories Ltd. (NSE: DIVISLAB) Q4 FY22 Earnings Concall dated May 23, 2022 Corporate Participants: Satish Choudhury\u00a0--\u00a0Chief Investor Relations Officer Murali K. Divi\u00a0--\u00a0Managing Director Nilima Prasad Divi\u00a0--\u00a0Whole-Time Director, Commercial Analysts: Tushar Manudhane\u00a0--\u00a0Motilal Oswal -- Analyst Unidentified Participant\u00a0--\u00a0-- Analyst Surya Patra\u00a0--\u00a0PhillipCapital -- Analyst Jiten Doshi\u00a0--\u00a0ENAM Asset Management -- Analyst Shyam Srinivasan\u00a0--\u00a0Goldman\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":129961,"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\/129961","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=129961"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/129961\/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=129961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=129961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=129961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}