The Q4F22 Earnings season is almost here!
What are the Key things that you need to track in various businesses like Hospitals 🏥, Pharma🩹, Chemicals 🧪 and Music🎵 etc ⤵️⤵️
I will be analysing the companies and the expectations in two ways:-
1⃣What does the company do and the sales split?
2⃣What to expect from the results/Business direction?
1. Divis Labs:
Over the years Divis has proven its capabilities as an API player and has the highest Ebitda margins (44%) when compared to the other Pharma companies. 57% of the business in the last Quarter Q3FY22 was contributed by Synthesis and 43% by Generic API’s.
What to expect?
Molnupiravir has contributed to almost 21% of sales for Divis in FY22 (According to Kotak).
Investors will need to track the recovery in the Generic API division which has been soft for the last 3 quarters and growth in CDMO ex of Molnupiravir.
What to look for in Financials?
Key monitorable to track is by how much the topline grows or degrows QoQ. Given the base was high in last Quarter due to Molnupiravir Sales.
Topline sustaining above 2100 crores and margins above 41% will be good!