Divis Labs Earnings Preview: Sequential recovery eyed led by custom synthesis, heart failure drug

Divis Laboratories is likely to report a recovery in its earnings on a sequential basis when it reports its March quarter results on Saturday. A CNBC-TV18 poll expects the company to report revenue growth in high-single-digit, while margin is likely to rebound from the lowest level since financial year 2012.

During the December quarter, the company's revenue had declined by 31 percent, operating profit or EBITDA more than halved, declining 63 percent, while net profit fell by a third on a year-on-year basis.

However, the company's year-on-year financials will continue to be impacted by a high base due to the supplies of the Covid-19 drug Molnupiravir API. For the current quarter, sales of Molnupiravir fell to $5 million in the December quarter, compared to $40 million in the December quarter, and $130 million during the same period last year.