Shares of Divi's Laboratories tanked 4.26 per cent to 4,777.3 per share on the BSE during Monday's intraday deals. This drop came despite the company reporting a 21 per cent year on-year (Y-o-Y) rise in net profit for the first quarter (Q1) of 2024-25 (FY25).
According to analysts, the pharmaceutical giant's Q1 performance was mixed, with revenue beating consensus estimates while net profit and earnings before interest, tax, depreciation, and amortization (Ebitda) missed consensus estimates.
Analysts at Nuvama Institutional Equities attributed the estimate miss to ongoing pricing headwinds in the active pharmaceutical ingredient (API) segment and muted nutraceutical sales. The company recorded flat growth in its nutraceutical business in Q1FY25 on a Y-o-Y basis.
Meanwhile, Divi's custom synthesis business continued to grow in double digits for the third straight quarter, contributing 49 per cent to sales and growing 46 per cent Y-o-Y.
This was driven by sales of Sacubitril (an antihypertensive drug) and Valsartan (an angiotensin receptor blocker) combination drugs, indicated for treating chronic heart failure in adults. The generics business grew 4 per cent Y-o-Y, showing its first reversal of growth trajectory after flat growth in 2023-24 (FY24).
Bu hikaye Business Standard dergisinin August 06, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin August 06, 2024 sayısından alınmıştır.
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FY25 as weak-earnings year is gradually getting priced in
Even as many blame record foreign portfolio outflows for the market downturn, the real culprit is weak earnings amid rich valuations, says GAUTAM CHHAOCHHARIA, head of global markets, India, UBS. In an interview with Samie Modak in Mumbai ahead of the UBS India Summit, Chhaochharia highlights that 2024-25 (FY25) weak earnings growth is now factoring into market expectations. Investors are shifting their focus to the actions of the Reserve Bank of India (RBI) and the central government, as well as the outcome of upcoming state elections. Edited excerpts:
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