{"id":11890,"date":"2022-09-03T18:25:22","date_gmt":"2022-09-03T12:55:22","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=11890"},"modified":"2022-09-26T22:10:57","modified_gmt":"2022-09-26T16:40:57","slug":"divis-laboratories-reported-weak-ebitda-margins-in-q1fy23","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/divis-laboratories-reported-weak-ebitda-margins-in-q1fy23\/","title":{"rendered":"Divi\u2019s Laboratories results reported weak EBITDA margins in Q1FY23"},"content":{"rendered":"

Divi’s Laboratories Limited is an Indian multinational pharmaceutical company and producer of active pharmaceutical ingredients (APIs) and intermediates headquartered in Hyderabad, Telangana, India. Generic APIs and intermediates are manufactured and specially synthesised by the company. The company has extensive ties to major worldwide pharmaceutical companies in the CS sector, and it holds a substantial market share in the generics sector for items like Naproxen, Dextromethorphan, and Gabapentin, among others<\/p>\n

In terms of generic naproxen, dextromethorphan, and gabapentin APIs, Divi’s Laboratories holds between 60 and 85% of the global market. The company presently holds between 20-30% of the global market share for both methylamine APIs and pregabalin.<\/p>\n

Divi\u2019s Laboratories on 12th<\/sup> August announced their Q1FY23<\/a> results, where they reported a low double digit YoY growth in top line but failed to meet margin expectations. The reason was that they witnessed an increase in raw materials, shipping, power, and fuel cost, resulting in heavy pressure on margins. On the stock exchange, Divi\u2019s Laboratories share price fell by 5.5% on the day Q1FY23 results were announced. So, let\u2019s analyse their Q1FY23 results in deeper details..<\/p>\n

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