{"id":155826,"date":"2023-11-06T12:12:44","date_gmt":"2023-11-06T17:12:44","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155826"},"modified":"2023-11-06T12:12:45","modified_gmt":"2023-11-06T17:12:45","slug":"divis-laboratories-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Divi&#8217;s Laboratories Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Business Overview<\/strong>\n<ul>\n<li>Anticipating growth opportunities in contrast media, sartans, soon-to-expire patented products.<\/li>\n<li>Demand for established generics remains stable despite pricing pressure.<\/li>\n<li>Pursuing comprehensive business strategy, new DMF filings to drive growth.<\/li>\n<li>Custom synthesis garnering customer interest with expanded capacity and reduced lead times.<\/li>\n<li>Sartans family now in top 10 products by revenue and scaled up as expected to become a major product segment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Manufacturing and Capacity<\/strong>\n<ul>\n<li>Construction underway on 200-acre greenfield project, to start production in Q1 FY25.<\/li>\n<li>New facilities to free up existing plants for custom synthesis and new generic opportunities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Q2 total income at INR1,995 crores, up 3% year-over-year.<\/li>\n<li>Q2 profit before tax at INR469 crores.<\/li>\n<li>Exports were 87% of revenues in Q2, with Europe and US exports being 68% of Q2 revenues.<\/li>\n<li>Generics were 60% of Q2 revenues, custom synthesis 40%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Unit III Capacity<\/strong>\n<ul>\n<li>Will increase operational expenses as new facilities come online.<\/li>\n<li>Expenses will be proportional to volume loaded into facilities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Custom Synthesis Growth<\/strong>\n<ul>\n<li>Growth distributed across several therapeutic segments.<\/li>\n<li>Driven by two large custom synthesis projects now at full production.<\/li>\n<li>Resumption of delayed custom synthesis opportunities post-COVID.<\/li>\n<li>Growth to accelerate in Q3 based on sales visibility.<\/li>\n<li>Working with large pharma companies, not small startups for late-stage pipeline projects or those acquired from smaller firms.<\/li>\n<li>Not seeing slowdown in opportunities that some CDMOs are facing.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pricing Pressures<\/strong>\n<ul>\n<li>Seeing pricing pressure in some large volume established generics.<\/li>\n<li>Impacting gross margins despite growth in custom synthesis.<\/li>\n<li>Expect pricing and margins to improve going forward once inventories are depleted.<\/li>\n<li>Not seeing major pricing pressure in newer generic launches.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Generic API Business<\/strong>\n<ul>\n<li>Seeing good volume growth in generic APIs, pricing pressure is impacting revenues.<\/li>\n<li>Estimating double-digit volume growth and mid-single digit price erosion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Contrast Media Update<\/strong>\n<ul>\n<li>Supplying two iodine-based contrast media currently.<\/li>\n<li>Entering two more iodine-based contrast media.<\/li>\n<li>Gadolinium-based contrast media in final process stage.<\/li>\n<li>Targeting gadolinium-based supplies in FY25 after approvals.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Peptide Opportunity and Regulatory Needs<\/strong>\n<ul>\n<li>Significant opportunity in peptide building blocks for diabetes and weight loss drugs like GLP-1 agonists.<\/li>\n<li>DIVISLAB can supply at scale versus competitors.<\/li>\n<li>Huge potential to expand into di\/tri-peptides.<\/li>\n<li>May not need USFDA approval for early stage peptides, but later stage peptides likely to need regulatory approvals.<\/li>\n<li>Qualifications very stringent and tough.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Peptide Product Timeline<\/strong>\n<ul>\n<li>Company sees initial sales starting in fiscal year 2025, with bigger sales numbers coming after that.<\/li>\n<li>Currently working on approvals and qualifications that will be completed prior to 2025.<\/li>\n<li>Existing facilities have capacity to produce needed building blocks like di- and tripeptides.<\/li>\n<li>Do not require additional capacity for the peptide opportunity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Nutraceutical Growth Drivers<\/strong>\n<ul>\n<li>Limited competitors in Divi&#8217;s niche products.<\/li>\n<li>Strong in animal nutrition complex products.<\/li>\n<li>Seeing steady 10-15% growth.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q2 FY24 Earnings Concall Business Overview Anticipating growth opportunities in contrast media, sartans, soon-to-expire patented products. Demand for established generics remains stable despite pricing pressure. Pursuing comprehensive business strategy, new DMF filings to drive growth. Custom synthesis garnering customer interest with expanded capacity and reduced lead times. Sartans [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"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":[10304,10307,10169,1115],"class_list":["post-155826","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\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":158683,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155826,"position":0},"title":"Divi&#8217;s Laboratories Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 13, 2024","format":false,"excerpt":"Key highlights from Divi's Laboratories Ltd (DIVISLAB) Q3 FY24 Earnings Concall Growth and Performance Witnessed a steady 3Q driven by expanding market opportunities and slight decline in raw material prices. Generic business remains stable with sustained demand for established products. New opportunities from patent expiry products continue to create positive\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\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":154677,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-pioneering-innovation-and-growth-in-the-pharmaceutical-frontier\/","url_meta":{"origin":155826,"position":1},"title":"Divi&#8217;s Laboratories: Pioneering Innovation and Growth in the Pharmaceutical Frontier","author":"Divyansh_Kasana","date":"September 20, 2023","format":false,"excerpt":"Stock Data: TickerNSE: DIVISLABSExchangeNSEIndustryPharmaceutical Price Performance: Last 5 Days+0.43 %YTD+12.23 %Last 12 Months+5.91 %As on 20-09-2023 Company Description: Divi's Laboratories is a leading pharmaceutical company headquartered in India, recognized for its excellence in research, development, and manufacturing of Active Pharmaceutical Ingredients (APIs) and custom synthesis solutions. With a commitment to\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/09\/f6ceac66-f2a3-45a2-ae80-d4455cad9356-2-3.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":135808,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155826,"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":155826,"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":170171,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-q1-fy26-earnings-results\/","url_meta":{"origin":155826,"position":4},"title":"Divi&#8217;s Laboratories Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"August 14, 2025","format":false,"excerpt":"Divi\u2019s Laboratories Limited, incorporated in 1990, is engaged in the manufacture and export of Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceutical ingredients. Presenting below are its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results Revenue: \u20b92,410 crore, up 13.79% year-on-year (YoY) from \u20b92,118 crore in Q1 FY25. Total Expenses: \u20b91,796\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"DIVISLAB Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/DILAB.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":133197,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155826,"position":5},"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":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155826","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=155826"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=155826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=155826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=155826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}