Divi’s Laboratories Q4 results preview: Margins likely to increase to 28%; better product mix to aid growth

Divi’s Laboratories Q4 results preview: Nifty 50 company Divi’s Laboratories is scheduled to announce its March quarter earnings together with dividend on May 25, 2024 (Saturday). Zee Business research analysts expect the company to report strong numbers for the review period on the back of recovery in demand for active pharmaceutical ingredients (APIs). Further, there is also expected strong growth in nutraceutical and custom synthesis (CS) segments.

For Q4FY24, the company’s consolidated revenue is expected to log 6 per cent on-year growth to Rs 2,058 crore versus Rs 1,951 crore in the same period last year. EBITDA at the pharma company is seen to increase 18 per cent on-year to Rs 577 crore, when compared to Rs 488 crore in Q4FY23. 

Margins at the Hyderabad-based company are estimated to scale to 28 per cent during the review quarter, logging a substantial 3 per cent or 300 bps rise on-year. In the year-ago period, the company’s margins were reported at 25 per cent.

The consolidated net profit at the company is expected to register 33 per cent on-year increase and come in at Rs 427 crore as against Rs 321 crore reported in the same quarter last year.

Zee Business research desk believes growth at the company will be led by better product mix.

Divi’s Laboratories share price performance

Ahead of its results tomorrow, shares of the company traded higher by over 1 per cent at Rs 4162. In the intra-day trade, the stock logged its fresh 52-week high price of Rs 4175, while its 1-year return is at 23 per cent.