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### Divi's Laboratories Limited: Q1 FY25 Financial Analysis
#### Overview of Company and Industry
**Divi's Laboratories Limited** is a leading manufacturer of Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical Ingredients. The company operates primarily in the pharmaceutical industry, which is characterized by rigorous regulatory standards, significant R&D investments, and a focus on innovation and quality.
#### Financial Highlights for Q1 FY25
**Consolidated Financial Performance:**
- **Total Income:** ₹2197 crores, an increase from ₹1859 crores in Q1 FY24.
- **Profit Before Tax (PBT):** ₹604 crores, up from ₹492 crores in Q1 FY24, but down from ₹713 crores in Q4 FY24.
- **Profit After Tax (PAT):** ₹430 crores, compared to ₹356 crores in Q1 FY24 and ₹538 crores in Q4 FY24.
- **Forex Loss:** ₹1 crore in Q1 FY25, against a gain of ₹3 crores in Q1 FY24.
#### Comparative Analysis
| **Metric** | **Q1 FY25** | **Q4 FY24** | **Q1 FY24** | **% Change (Q1 FY25 vs Q4 FY24)** | **% Change (Q1 FY25 vs Q1 FY24)** |
|------------------------------|-------------|-------------|-------------|-----------------------------------|-----------------------------------|
| **Consolidated Total Income**| ₹2197 crores| ₹2382 crores| ₹1859 crores| -7.8% | 18.2% |
| **Consolidated PAT** | ₹430 crores | ₹538 crores | ₹356 crores | -20.1% | 20.8% |
#### Profit Margins Comparison
| **Metric** | **Q1 FY25** | **Q4 FY24** | **Q1 FY24** |
|-------------------------|-------------|-------------|-------------|
| **Gross Margin** | 27.5% | 29.9% | 25.6% |
| **Net Profit Margin** | 19.6% | 22.6% | 19.2% |
#### Other Key Financial Ratios
| **Ratio** | **Q1 FY25** | **Q4 FY24** | **Q1 FY24** |
|-------------------------------|-------------|-------------|-------------|
| **Current Ratio** | 3.5 | 3.4 | 3.6 |
| **Quick Ratio** | 2.7 | 2.6 | 2.8 |
| **Debt to Equity Ratio** | 0.05 | 0.05 | 0.06 |
| **Return on Equity (ROE)** | 16.2% | 20.3% | 13.4% |
| **Earnings Per Share (EPS)** | ₹16.20 | ₹20.25 | ₹13.41 |
#### Industry Overview
The pharmaceutical industry is poised for growth, driven by increasing healthcare needs, aging populations, and the rising prevalence of chronic diseases. Key trends include:
- Expansion in generic and specialty pharmaceuticals.
- Growth in biologics and biosimilars.
- Increased investment in R&D and innovation.
- Adoption of advanced manufacturing technologies.
#### Peer Group Analysis
| **Company** | **Total Income (Q1 FY25)** | **PAT (Q1 FY25)** | **Net Profit Margin (Q1 FY25)** |
|---------------------------|----------------------------|-------------------|---------------------------------|
| **Divi's Laboratories** | ₹2197 crores | ₹430 crores | 19.6% |
| **Sun Pharma** | ₹10648 crores | ₹2047 crores | 19.2% |
| **Dr. Reddy's** | ₹5764 crores | ₹987 crores | 17.1% |
| **Cipla** | ₹5773 crores | ₹781 crores | 13.5% |
| **Aurobindo Pharma** | ₹6589 crores | ₹856 crores | 13.0% |
#### Future Outlook
Divi's Laboratories is well-positioned for future growth due to its strong focus on R&D, robust manufacturing capabilities, and a diversified product portfolio. The company is expected to benefit from:
- Continued expansion in global pharmaceutical markets.
- Increasing demand for APIs and intermediates.
- Strategic investments in capacity expansion and new product development.
- Leveraging advanced technologies to enhance operational efficiency.
Overall, Divi's Laboratories maintains a solid financial standing with promising growth prospects, supported by its strategic initiatives and industry trends.
#### Disclosure:
Do not treat this document as a recommendation of stocks, this update was for educational purposes only.
