Divi’s Laboratories Net Profit Rise 26% In March Quarter, Beats Estimates

Divi’s Laboratories Ltd. on Saturday posted a net profit of ₹6.7 billion for the March quarter, up 25.6% year-on-year and 12.3% sequentially, beating analysts’ expectations of ₹6.1 billion. The specialty chemicals and high-value drugs maker has recorded strong double-digit net profit growth for six consecutive quarters.

Revenue for the quarter rose 12.3% on-year and 10.4% on-quarter to ₹25.4 billion, just shy of the estimated ₹25.5 billion.
Raw material costs remained steady at ₹9.1 billion compared to a year ago, while other expenses fell 2% to ₹3.5 billion. Total expenses increased 7.6% to ₹17.6 billion.

Depreciation and amortisation rose nearly 14% to ₹1.1 billion, primarily due to the new plant at Kakinada. Tax expenses increased 14.8% to ₹1.9 billion. The company reported a foreign exchange gain of ₹100 million, reversing a loss of ₹20 million from last year.

For the full 2024-25 fiscal year, Divi’s Labs posted a 40% rise in net profit to ₹22.09 billion on 20% revenue growth to ₹91.98 billion.

The company announced the appointment of Venkatesa Perumallu Pasumarthy as the new chief financial officer, following the retirement of current CFO L. Kishore Babu on 1 August. Divi’s Labs also declared a final dividend of ₹30 per share.