Divi’s Laboratories’ (Divi’s) has posted its highest ever quarterly sales in generics segment of Rs10bn, up 42% YoY in Q4FY23, though a surge in raw material price and overhead cost has impacted margins (down 1,670bps YoY). Management has indicated a gradual improvement in margins Q1FY24 onwards as it has exhausted high-priced inventory and raw material prices are also declining.