Piramal Pharma Ltd.'s consolidated net profit jumped over fourfold in the second quarter of the current financial year, but still missed analysts' estimates.
The pharmaceutical firm posted a profit of Rs 23 crore in the September quarter as compared to Rs 5 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a profit of Rs 31 crore.
Piramal Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 17% to Rs 2,242 crore versus Rs 1,911 crore (Bloomberg estimate: Rs 2,166 crore).
Ebitda up 29% to Rs 342 crore versus Rs 266 crore (Estimate: Rs 284 crore).
Margin at 15.2% versus 13.9% (Estimate: 13.10%).
Net profit up 4.6 times to Rs 23 crore versus Rs 5 crore (Estimate: Rs 31 crore).
The growth in earnings before interest, taxes, depreciation and amortisation was driven by operating leverage, cost optimisation initiatives and superior revenue mix.
"We continue our momentum of delivering healthy revenue growth. accompanied by YoY Ebitda margin expansion," Chairperson Nandini Piramal said. "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 capitalise on rising demand for sterile fill-finish capabilities, the company has announced a $80-million expansion plan at its Lexington facility, which is expected to get complete by end of fiscal 2027, the chairperson said.
Over the long term, we remain committed to achieving our financial goals of $2-billion revenue, 25% Ebitda margin and 1x net debt/Ebitda by FY30.Nandini Piramal, chairperson
Key Business Highlights
Contract Development and Manufacturing Organisation
Biotech funding improved over previous years but remains uneven across months. Regulatory changes and supply-chain diversification driving increase in customer enquiries and visits, but decision-making by customers remains delayed.
Targeted business development efforts resulting in steady inflow of new orders.
YoY improvement in demand in company's generic active-pharmaceutical-ingredient business.
Operating leverage and cost-optimisation initiatives yielding continued YoY improvement in Ebitda margin.
Complex Hospital Generics
Company saw good volume growth in inhalation anesthesia portfolio in the US and emerging markets.
Capacity expansion at Dahej and Digwal underway to capture growth opportunity in the rest-of-world markets.
Company is working in building portfolio of differentiated and specialty products to drive long term profitable growth.
India Consumer Healthcare
Added nine new products and 13 new SKUs to company's portfolio during H1 FY25.
Company to continue to invest in media and trade spends to drive growth in Power Brands. Power Brands grew by 18% YoY in Q2 and H1 FY25 and contributed to 48% of ICH sales
Growth in i-range adversely impacted due to regulator-mandated price reductions.
E-commerce grew over 30% YoY in Q2 and H1 FY25.
Company is focusing on improving the profitability of this channel through pricing, mix and investment optimization
Company plans to widen its reach — transition from a pharmacy — dominant to an omni-channel consumer healthcare company.
Shares of Piramal Pharma closed 0.72% higher at Rs 216.7 apiece on the BSE, compared to a 0.17% decline in the benchmark Sensex.
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