{"id":147097,"date":"2023-05-23T10:00:57","date_gmt":"2023-05-23T14:00:57","guid":{"rendered":"https:\/\/44.250.171.167\/?p=147097"},"modified":"2023-05-23T10:00:59","modified_gmt":"2023-05-23T14:00:59","slug":"divis-laboratories-ltd-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Divi&#8217;s Laboratories Ltd Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[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 lowering in the future. This reduction is anticipated to bring benefits in upcoming quarters, potentially reaching previous levels.<\/li>\n<\/ul>\n<ul>\n<li>[00:12:50] Tushar Manudhane from Motilal Oswal enquired about the timeline for going back to the normal GM of 67-68%. Murali Divi MD answered that the timing of the expected improvement is uncertain but anticipated by the end of the year.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:22] Prakash Agarwal from Axis Capital asked about contrast media products, such as the number of products, target market, and ramp-up plan. Murali Divi MD replied that the company is expanding its capacity for iopamidol and iohexol, and has started commercial production of contrast media for a big pharma. This should lead to growth in the coming quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:15:53] Prakash Agarwal at Axis Capital queried about the current split between custom synthesis and generics in the product mix. Murali Divi MD replied that the company&#8217;s target split between custom synthesis and generics is 50:50, but the current split is 56:44 in favor of generics. In 4Q, the split was 59:41 in favor of generics.<\/li>\n<\/ul>\n<ul>\n<li>[00:17:40] Surya Narayan Patra from PhillipCapital asked if there are any unprecedented business conditions that have caused the company\u2019s reported margin and GM to be at their lowest levels in the last 10 years. Murali Divi MD explained that there were no unprecedented events that caused the company\u2019s recent fluctuations in profitability. DIVIS attribute the changes to normal variations in business, including changes in product mix and RM prices, and expect to see a return to normalcy towards the end of the year.<\/li>\n<\/ul>\n<ul>\n<li>[00:21:44] Surya Narayan Patra from PhillipCapital asked about the company\u2019s adoption of Green Chemistry principles and technology upgrades. Murali Divi MD replied that adopting Green Chemistry and new technologies is necessary for doing business with big pharmaceutical companies in the US and Europe. These changes bring advantages such as increased productivity and reduced RM costs, and are essential for the company\u2019s long-term success.<\/li>\n<\/ul>\n<ul>\n<li>[00:25:43] Cyndrella Carvalho at JM Financial enquired about an update on the status of the two custom synthesis projects that were scheduled to be commissioned in 4Q or 1Q. Murali Divi MD said one of the two custom synthesis projects has already gone into commercial production and supply. The second project is in the ramp-up phase and will be available in the coming quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:26:57] Cyndrella Carvalho with JM Financial asked how is the pricing scenario for generic APIs currently, and how will this affect the company&#8217;s realizations. Murali Divi MD said that the pricing scenario for generic APIs is mixed. Some products are still seeing strong demand and pricing, while others are facing pressure due to the COVID-19 pandemic. The company expects prices to stabilize and improve in the coming quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:30:40] Shyam Srinivasan from Goldman Sachs asked about the reasons for the QoQ growth in custom synthesis and generic API, excluding nutraceuticals and whether it is due to specific projects or other factors. Murali Divi MD answered that the company is investing INR1,200-1,500 crores in Unit 3. This unit will be used to manufacture nutraceutical APIs, advanced intermediates, and sartan materials. The company expects this investment to help it meet the growing demand for its products and expand its market share.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:58] Neha Manpuria at Bank of America asked when will the Phase 1 of the Kakinada unit start manufacturing nutraceuticals and advanced intermediaries. Murali Divi MD replied its is a greenfield project and DIVISLAB has just started there last month of the ground cleanup and expects to commercialize by end of &#8217;24.<\/li>\n<\/ul>\n<ul>\n<li>[00:40:56] Neha Manpuria at Bank of America enquired if the company is still consuming high-cost inventory and facing pricing pressure in generic APIs, which is why GM have not improved as expected. Nilima Divi Director said the company is employing a mix of high-cost and low-cost materials as prices transition, with the expectation of realizing the benefits of lower material costs in the upcoming quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:44:00] Nikhil from SIMPL asked if the company&#8217;s ability to gain market share be restricted by the current inventory destocking and excessive price competition in the API market. Murali Divi MD said the company has two growth engines in generic products: traditional and established products where metal price is the issue and newer generic products where capacity has been increased. It will take 4-8 quarters to see the full benefits of the increased capacity.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:13] Ankush Mahajan with Axis Securities enquired if DIVISLAB can expect revenue for media agents in 1Q and how was the volume uptake for generic APIs like gabapentin and naproxen in 4Q. Murali Divi MD replied that the market for generic products like gabapentin is consistent with only price variations.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q4 FY23 Earnings Concall Q&amp;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 lowering in the future. This [&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":"Divi's Laboratories Ltd Q4 FY23 Earnings Conference Call Insights #DIVISLAB #Q4 #FY23 #Earnings #Stocks","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":[10304,10307,10169,1115],"class_list":["post-147097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-api","tag-branded-drug","tag-earnings","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":147097,"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":147097,"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":135808,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":147097,"position":2},"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":127343,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":147097,"position":3},"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":140081,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-divislab-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":147097,"position":4},"title":"Divi&#8217;s Laboratories Ltd (DIVISLAB) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 3, 2023","format":false,"excerpt":"Divi's Laboratories Ltd (NSE: DIVISLAB) Q3 FY23 Earnings Concall dated Feb. 03, 2023 Corporate Participants: M. Satish Choudhury\u00a0--\u00a0Company Secretary and Chief Investor Relations Officer Murali K. Divi\u00a0--\u00a0Managing Director Nilima Prasad Divi\u00a0--\u00a0Whole-Time Director Analysts: Tushar Manudhane\u00a0--\u00a0Motilal Oswal Financial Services -- Analyst Prakash Agarwal\u00a0--\u00a0Axis Capital Limited -- Analyst Damayanti Kerai\u00a0--\u00a0HSBC -- Analyst\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":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128735,"url":"https:\/\/alphastreet.com\/india\/laurus-labs-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":147097,"position":5},"title":"Laurus Labs Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 2, 2022","format":false,"excerpt":"https:\/\/youtu.be\/83rl6ffkU9c Key highlights from Laurus Labs Limited (LAURUSLABS) Q4 FY22 Earnings Concall Management Update: LAURUSLABS said that based on its healthy product pipeline, it continues to invest in FDF infrastructure. And brownfield expansion at Unit 2 is progressing as per expectation and is expected to add significant capacity to FDF\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\/147097","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=147097"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/147097\/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=147097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=147097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=147097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}