{"id":158683,"date":"2024-02-13T07:07:15","date_gmt":"2024-02-13T12:07:15","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158683"},"modified":"2024-02-13T07:07:16","modified_gmt":"2024-02-13T12:07:16","slug":"divis-laboratories-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Divi&#8217;s Laboratories Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Divi&#8217;s Laboratories Ltd (DIVISLAB) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Growth and Performance<\/strong>\n<ul>\n<li>Witnessed a steady 3Q driven by expanding market opportunities and slight decline in raw material prices.<\/li>\n<li>Generic business remains stable with sustained demand for established products.<\/li>\n<li>New opportunities from patent expiry products continue to create positive prospects.<\/li>\n<li>Custom synthesis segment is rising with two major Big Pharma projects entering full scale production, expected to further increase contribution in coming quarters.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Expansion<\/strong>\n<ul>\n<li>Actively involved in peptide building blocks used in new antidiabetic and anti-obesity drugs.<\/li>\n<li>Production activity to commence in Q2 2024-2025 for 200 acre Phase 1 greenfield project as part of Unit III infrastructure.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Global Crisis Impact<\/strong>\n<ul>\n<li>The Red Sea crisis has introduced global supply chain disruptions, leading to increased freight costs and shipment delays.<\/li>\n<li>With vessel diversion and longer voyages, international freight rates and insurance premiums are rising.<\/li>\n<\/ul>\n<\/li>\n<li><strong>China Opportunity<\/strong>\n<ul>\n<li>Big Pharma looking to curb exposure to China manufacturing, translating into business for Indian CDMOs.<\/li>\n<li>Seeing huge growth opportunities as Big Pharma works more with Indian and European companies.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Peptide\/Protein Progress<\/strong>\n<ul>\n<li>Supplying protected 3-4 amino acid chains; working with innovators using these in GLP-1 drugs made at their sites.<\/li>\n<li>Commercial opportunities expected around 2025 after 1+ year qualification process.<\/li>\n<li>Experience with amino acid protecting groups like tBoc, Fmoc, Dboc used in solid phase peptide synthesis.<\/li>\n<li>Currently supplying protected amino acids, dipeptides, tripeptides; under qualification for supply of longer 30-40 amino acid peptides.<\/li>\n<li>Focus on building blocks for now rather than final API.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Custom Synthesis Growth Drivers<\/strong>\n<ul>\n<li>Two major projects commercialized and ramping up volumes, benefiting custom synthesis share.<\/li>\n<li>Several molecules in late regulatory stages with customers, ready with capacity for opportunities.<\/li>\n<li>Custom synthesis share varies quarter-to-quarter, more relevant to see full year share.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Generic Business Outlook<\/strong>\n<ul>\n<li>Pricing pressures currently driven by competitors destocking inventory, expect stability in 2-3 quarters.<\/li>\n<li>Maintained market share despite pricing pressures; increased capacity in major APIs.<\/li>\n<li>Future patented molecules coming off patent from 2025 onwards a growth driver.<\/li>\n<li>Kakinada Production to start end of Q2 next fiscal year.<\/li>\n<li>Target is equal growth in generics and custom synthesis.<\/li>\n<li>Multiple growth levers in generics and custom synthesis, so no skew expected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Kakinada Update<\/strong>\n<ul>\n<li>Production to start end of Q2 next fiscal year.<\/li>\n<li>Commercialization by Q3 2024-25 following regulatory approvals given export focus.<\/li>\n<li>Will have a mix of both generics and custom synthesis products.<\/li>\n<li>Most manufacturing blocks are multi-purpose rather than dedicated.<\/li>\n<li>Current investments of INR 458 crores for seven production blocks.<\/li>\n<li>Additional 300 acres available for future expansion as opportunities increase.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Nutraceuticals Outlook<\/strong>\n<ul>\n<li>Running at full capacity currently in niche products like astaxanthin.<\/li>\n<li>Worldwide soft demand and prices, cautious on growth.<\/li>\n<li>Steady 10% YoY growth, may add capacity if opportunities increase.<\/li>\n<\/ul>\n<\/li>\n<li><strong>GLP-1 Update<\/strong>\n<ul>\n<li>Have enough capacity currently to meet initial customer demand.<\/li>\n<li>If volumes grow beyond expected, may need to invest in additional dedicated capacity.<\/li>\n<li>Have dedicated capacity of few hundred tonnes ready for GLP-1 commercialization.<\/li>\n<li>Waiting on innovator customer approvals to start supply.<\/li>\n<li>GLP-1 products expected to be accretive to overall gross margins.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capacity Utilization<\/strong>\n<ul>\n<li>Current quarter capacity utilization around 80%.<\/li>\n<li>Added capacity in last 2 years now being utilized for higher volumes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Divi&#8217;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 prospects. Custom synthesis segment is [&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-158683","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":155826,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158683,"position":0},"title":"Divi&#8217;s Laboratories Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 6, 2023","format":false,"excerpt":"Key highlights from Divi'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\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":170171,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-q1-fy26-earnings-results\/","url_meta":{"origin":158683,"position":1},"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":158683,"position":2},"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":127343,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":158683,"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":135808,"url":"https:\/\/alphastreet.com\/india\/divis-laboratories-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":158683,"position":4},"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":166862,"url":"https:\/\/alphastreet.com\/india\/divislab-q3-2024-2025-call-highlights-expansion-plans-generics-growth-and-api-challenges\/","url_meta":{"origin":158683,"position":5},"title":"DIVISLAB Q3 2024-2025 Call Highlights: Expansion Plans, Generics Growth, and API Challenges!","author":"Praveen","date":"February 13, 2025","format":false,"excerpt":"Divi's Laboratories Ltd., an Indian multinational pharmaceutical company that manufactures and exports API's, Intermediates and Nutraceutical ingredients, in its Q3 earnings call elaborated on several strategic initiatives and business segments. The management mentioned that the Kakinada facility's Phase I will be completed in 6 months, focusing on backward integration and\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\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158683","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=158683"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158683\/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=158683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=158683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=158683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}