Piramal Pharma Shares Zoom Over 4%: Released Q2 FY25 Results

On October 23, 2024, Piramal Pharma Limited, a leading global pharmaceuticals and wellness company, today announced its standalone and consolidated results for the second quarter (Q2) and first half (H1) ended September 30, 2024.

Piraml Pharma Q2 FY25 Performance

During Q2 FY25, revenue from operations grew by 17% year-on-year (YoY), primarily driven by robust growth in the CDMO business. EBITDA increased by 28% YoY, resulting in an EBITDA margin of 18%, a year-on-year improvement of approximately 150 basis points. This growth was supported by operating leverage, cost optimization initiatives, and an enhanced revenue mix. 

Key Business Highlights for Q2 and H1 FY25

Contract Development and Manufacturing Organization (CDMO)  

The market outlook indicates improved biotech funding compared to previous years, though it remains uneven. Regulatory changes and supply chain diversification have led to increased customer inquiries, although decision-making has been slower. The company’s targeted business development efforts have resulted in a steady inflow of new orders, along with a YoY improvement in demand for its generic API business.

Complex Hospital Generics (CHG)

Piramal Pharma witnessed significant volume growth in its inhalation anaesthesia portfolio, mainly in the US and emerging markets. The capacity expansion efforts at its Dahej and Digwal facilities are underway to capture growth opportunities in international markets. It is also investing in portfolio expansion, focusing on differentiated and speciality products to drive long-term profitable growth.

India Consumer Healthcare (ICH)

During H1 FY25, It added 9 new products and 13 new SKUs to its portfolio. The company’s investment in media and trade has driven growth in its Power Brands, which grew by 18% YoY and contributed to 48% of ICH sales. However, growth in its i-range was adversely impacted by regulatory-mandated price reductions. E-commerce sales grew by over 30% YoY in Q2 and H1 FY25, with a focus on improving profitability through pricing and investment optimisation

Nandini Piramal, Chairperson, Piramal Pharma Limited said, “We continue our momentum of delivering healthy revenue growth accompanied by YoY EBITDA margin expansion. This has been primarily driven by consistent growth in our CDMO business which has witnessed a good pick-up in innovation-related work and on-patent commercial revenues. To sustain this growth momentum and to capitalize on rising demand for sterile fill-finish capabilities, we have announced a US$80Mn expansion plan at our Lexington facility which is expected to be complete by the end of FY27. In our CHG business, we are witnessing steady volume growth in Inhalation Anesthesia products in the US and Emerging Markets. “

She further added “In our ICH business, we continue to see robust growth in our power brands and e-commerce sales. During the quarter, we released our Sustainability Report for FY24 under the theme, ‘Building Resilience for a Sustainable Tomorrow’, highlighting our progress on the sustainability initiatives. Over the long term, we remain committed to achieving our financial goals of US$2 bn revenue with 25% EBITDA margin and 1x net debt / EBITDA by FY30.”

On October 24, 2024, Piramal Pharma shares opened at ₹227.90 and touched the day high of ₹230.00 at 09:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.