HYDERABAD : Indian pharmaceutical firm Divi’s Laboratories reported a 49.2% fall in quarterly revenue, lacking analysts’ estimates, because the generic drug maker grappled with pricing pressures in key markets like the US.
The corporate reported a consolidated revenue of three.56 billion rupees ($42.9 million) for the primary quarter ended June 30, in comparison with 7.02 billion rupees a yr in the past.
Analysts, on a mean, had anticipated a revenue of 4.17 billion rupees, in accordance with Refinitiv information. Income from operations fell 21.2% to 17.78 billion rupees.
The Hyderabad-based firm’s core enterprise is manufacturing of lively pharmaceutical elements (API), that are chemical compounds in a drug that assist produce desired well being results.
Divi’s Labs can also be concerned within the contract manufacturing of APIs and intermediates for international firms. Exports to the U.S. and Europe contribute to over 60% of income.
In Might, the corporate mentioned there have been pricing pressures in some generic APIs, with some corporations after the pandemic struggling to do away with enormous shares of dosages of generic medicine earlier than their expiry date. This, in flip, damage costs and demand for generic APIs.
Divi’s Labs mentioned it expects costs to stabilize within the coming quarters.
The corporate additionally noticed a 6.41% rise in prices of supplies consumed through the quarter, it mentioned.
Shares of Divi’s Labs had been buying and selling 0.84% decrease at 3,648.25 rupees on Monday after its outcomes, in comparison with a 0.44% fall within the Nifty pharma index.
Smaller rival Laurus Labs final month reported a fall in quarterly revenue and income, citing causes together with demand softness in its API enterprise. The corporate’s core revenue margins sank to a 19-quarter low.
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Up to date: 14 Aug 2023, 02:39 PM IST
Supply: Live Mint