Divi's Laboratories Reports Mixed Performance in Q1 FY25, PAT Shows Positive Trend

Divi’s Laboratories, a leading pharmaceutical company in the largecap industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Divi’s Lab. has seen a flat performance in the quarter, with a score of 1 compared to 11 in the previous 3 months. However, there are some positive aspects to the company’s financials.

One of the highlights is the Profit After Tax (PAT) for the half-yearly period, which has grown by 42.98% year on year, reaching Rs 968.00 crore. This shows a very positive trend in the near term. Additionally, the company has a high Dividend Payout Ratio (DPR) of 49.69% in the last five years, indicating that it is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas that need improvement for Divi’s Lab. The Inventory Turnover Ratio for the half-yearly period is at its lowest at 2.46 times, showing a decline in each of the last five half-yearly periods. This suggests that the company’s pace of selling inventory has slowed down. Furthermore, the Operating Cash Flow for the last three years is at its lowest at Rs 1,261.00 crore, indicating a decrease in cash revenues from business operations. The Debtors Turnover Ratio for the half-yearly period is also at its lowest at 3.64 times, showing a slowdown in the company’s pace of settling its debtors.

Overall, Divi’s Laboratories has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects, there are also areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s future financial reports.