Piramal Pharma Ltd on Wednesday released its fiscal second quarter earnings with profit at Rs 22.59 crore, posting a jump of 350.0 per cent in comparison to Rs 5.02 crore recorded during the corresponding quarter of FY24. It recorded Q2 revenue from operations at Rs 2241.75 crore, up 17.3 per cent as against Rs 1911.38 crore during the same period of previous financial year, primarily driven by robust growth in CDMO business.
The company’s EBITDA stood at Rs 341.6 crore, up 28.5 per cent YoY with EBITDA margin of 18 per cent, a YoY improvement of about 150 bps, driven by operating leverage, cost optimization initiatives and superior revenue mix.
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Q2 performance across businesses
Contract Development and Manufacturing Organization (CDMO): Piramal Pharma said that targeted business development efforts are resulting in steady inflow of new orders and the company is witnessing a YoY pick-up in the generic API business. Further, operating leverage and cost optimization initiatives are yielding continued YoY improvement in EBITDA margins.
Complex Hospital Generics (CHG): The company reported a good volume growth in inhalation anesthesia portfolio in the US and emerging markets. Further, capacity expansion at Dahej and Digwal is underway to capture growth opportunities in the RoW markets. Piramal Pharma is also working on multiple cost optimization and productivity enhancement initiatives in the areas of sourcing, manufacturing, distribution, and operational excellence to maintain our healthy EBITDA margin in this business.
India Consumer Healthcare (ICH): Piramal Pharma added 9 new products and 13 new SKUs to its portfolio during H1FY25 and has continued to invest in media and trade spends to drive growth in Power Brands. Power Brands, meanwhile, grew by 18 per cent YoY in Q2 and H1 FY25 and contributed to 48 per cent of ICH sales. Growth in i-range was adversely impacted due to regulator mandated price reductions. Furthermore, in terms of distribution channels, e-commerce grew by over 30 per cent YoY in Q2 and H1 FY25. Piramal Pharma is also planning to widen its reach and transition from a Pharmacy-dominant to an Omni-channel consumer healthcare company.
Nandini Piramal, Chairperson, Piramal Pharma Limited, said, “We continue our momentum of delivering healthy revenue growth accompanied by YoY EBITDA margin expansion.
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