Piramal Pharma Reports 11% YoY Growth in Q2 Revenue

Piramal Pharma Reports 11% YoY Growth in Q2 Revenue

Piramal Pharma Limited, the pharmaceutical company, has reported an 11% year-on-year increase in its consolidated revenue from operations for the second quarter of the fiscal year. The company’s revenue reached ₹1,911 crore, compared to ₹1,720 crore in Q2FY23, highlighting strong performance across all its business segments.

Return to Profitability

Piramal Pharma recorded a consolidated profit after tax (PAT) of ₹5 crore in the quarter, signaling a return to profitability. This turnaround comes in contrast to the corresponding quarter in the previous fiscal year when the company faced losses.

Financial Metrics

Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter amounted to ₹315 crore, with an EBITDA margin of 16%. The company also successfully completed a rights issue of ₹1,050 crore, which had a strong 128% subscription rate. Piramal Pharma ended the quarter with net debt of ₹3,823 crore.

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Business Verticals

Piramal Pharma operates in three key business verticals: contract development and manufacturing organization (CDMO), complex hospital generics (CHG), and India consumer healthcare (ICH). The CDMO business saw a strong return to mid-teens growth during the quarter, with increasing order inflows, especially for differentiated offerings and innovation-related work.

This business vertical experienced a 14% year-on-year revenue growth.The CHG business segment reported a 5% year-on-year revenue increase, driven by healthy volume growth in inhalation anesthesia (IA) products. On the other hand, the ICH business exhibited a robust performance, with a 13% year-on-year revenue increase.

Outlook and Future Plans

The company anticipates a similar growth trend for the remainder of the financial year, particularly in Q4. Piramal Pharma has successfully reduced its debt by using the proceeds from the rights issue and plans to maintain its momentum for the second half of FY24. Nandini Piramal, Chairperson of Piramal Pharma Limited, expressed optimism about the company’s prospects for a robust performance by the end of the year.

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