Piramal Pharma Limited Announces Results for Q2 and H1 FY25

MUMBAI, Oct. 23, 2024 /PRNewswire/ -- Piramal Pharma Limited (NSE: PPLPHARMA) (BSE: 543635), a leading global pharmaceuticals and wellness company, today announced its standalone and consolidated results for the Second Quarter (Q2) and Half Year (H1) ended 30(th) September 2024.


                                         
     
       Consolidated Financial Highlights


                                                                                         
         
      
      (in ? Cr. or as stated)



     
              Particulars                 Q2FY25                       Q2FY24            YoY     H1FY25                   H1FY24           YoY
                                                                                  Growth                                               Growth



     
              Revenue from Operations      2,242                         1,911            17 %      4,193                     3,660           15 %



     
                 CDMO                      1,324                         1,068            24 %      2,381                     1,967           21 %



     
                 CHG                         643                           589             9 %      1,274                     1,206            6 %



     
                 ICH                         277                           256             8 %        541                       495            9 %



     
              EBITDA                         403                           315            28 %        627                       485           29 %



     
              EBITDA Margin                 18 %                         16 %                      15 %                     13 %



     Share of Net Profit of Associates          17                            19          (10) %         40                        33           18 %



     
              PAT                             23                             5           350 %       (66)                     (94)           NM



     
              PAT Margin                     1 %                          0 %                     (2) %                    (3) %

Key Highlights for Q2FY25

    --  Revenue from Operations grew by 17% YoY, primarily driven by robust
        growth in CDMO business
    --  EBITDA grew by 28% YoY with EBITDA margin of 18%, a YoY improvement of
        about 150bps, driven by operating leverage, cost optimization
        initiatives and superior revenue mix
    --  Released our FY2024 Sustainability Report. The report follows GRI
        standards and is aligned with SASSB and UNGC frameworks. It also
        highlights our commitment to reduce our GHG(1) emissions in-line with
        SBTi's(2) 1.5(o) decarbonization pathway

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 get complete by end FY27. In our CHG business, we are witnessing steady volume growth in Inhalation Anesthesia products in the US and Emerging Markets. In our ICH business, we continue to see a 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."

1. Green House Gas; 2. Science Based Target initiative



     
               Key Business Highlights for Q2 and H1 FY25



     
                    Contract Development and Manufacturing Organization (CDMO)
                :


     - Market outlook - 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 our generic API business


     - Operating leverage and cost optimization initiatives yielding continued YoY improvement in EBITDA margins


     - Maintained our quality track record with receipt of EIR for our PPDS facility (India) with Zero Form - 483 observations and NAI designation


     - Customer led US$80Mn expansion planed in Lexington to more than double our capacity to capture rising demand for Sterile Fill-Finish capabilities




     
                    Complex Hospital Generics (CHG):


     - 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 RoW markets


     - Investing in portfolio expansion - Building portfolio of Differentiated and Specialty products to drive long term profitable growth


     - 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):


     - Added 9 new products and 13 new SKUs to our portfolio during H1FY25


     - 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 by over 30% YoY in Q2 and H1 FY25. Focus on improving the profitability of this channel through pricing, mix and investment optimization


     - Plan to widen our reach - Transition from a Pharmacy-dominant to an Omni-channel consumer healthcare company. Establish winning NPDs from online channel to offline, with general trade and modern trade ready SKUs


                                                                          
      
     Consolidated Profit and Loss Statement


                                                                                                                                        
     
          (in 
      ? 
           Cr. or as stated)



     
                Particulars                                                           
              
                Quarterly                                                     Half Yearly


                                                  Q2FY25              Q2FY24        YoY                           Q1FY25   QoQ Change       H1FY25            H1FY24                       YoY
                                                               Change                                                                                  Change



     Revenue from Operations                                          2,242       1,911                              17 %        1,951          15 %             4,193                      3,660  15 %



     Other Income                                                        61          49                              24 %           20         213 %                81                         88 (8) %



     
                Total Income                                        2,303       1,961                              17 %        1,971          17 %             4,274                      3,748  14 %



     Material Cost                                                      796         638                              25 %          674          18 %             1,471                      1,264  16 %



     Employee Expenses                                                  560         516                               8 %          580         (3) %             1,139                      1,012  13 %



     Other Expenses                                                     544         492                              11 %          493          10 %             1,037                        986   5 %



     
                EBITDA                                                403         315                              28 %          224          80 %               627                        485  29 %



     Interest Expenses                                                  108         110                             (2) %          107           1 %               215                        228 (6) %



     Depreciation                                                       192         185                               4 %          185           4 %               377                        358   5 %



     Share of Net Profit of Associates                                   17          19                            (10) %           22        (23) %                40                         33  18 %



     
                Profit Before Tax                                     120          40                             204 %         (45)         NM                  75                       (68)   NM



     Tax                                                                 98          35                             182 %           44         124 %               141                         26 442 %



     
                Net Profit after Tax                                   23           5                             350 %         (89)         NM                (66)                      (94)   NM



     Exceptional item                                                     -



     
                Net Profit after Tax after Exceptional Item            23           5                             350 %         (89)         NM                (66)                      (94)   NM



     
                Consolidated Balance Sheet


                                                                                                 
              
           (in 
     ? 
      Cr. or as stated)



     
                   Key Balance Sheet Items                                                                                 
              
              As at


                                                                         30-Sep-24                                                        31-Mar-24



     
                Total Equity                                                                                                               7,907        7,911



     Net Debt                                                                                                                                4,235        3,932



     
                Total                                                                                                                     12,143       11,843





     
                Net Fixed Assets                                                                                                           9,096        9,106



         Tangible Assets                                                                                                                     4,298        4,250



         Intangible Assets including goodwill                                                                                                3,669        3,740



         CWIP (including IAUD*)                                                                                                              1,130        1,116



     Net Working Capital                                                                                                                     2,651        2,339



     Other Assets#                                                                                                                             396          398



     
                Total Assets                                                                                                              12,143       11,843



     *IAUD - Intangible Assets Under Development; # Other Assets include Investments and Deferred Tax Assets (Net)

Q2FY25/H1FY25 Earnings Conference Call

Piramal Pharma Limited will be hosting a conference call for investors / analysts on 24(th) October 2024 from 5:00 PM to 5:45 PM (IST) to discuss its Q2 and H1 FY25 Results.

The dial-in details for the call are as under:



              
                Event                                Location & Time   
              
                Telephone Number



              Conference call on                   India - 05:00 PM IST                      +91 22 6280 1461 /+91 22 7115 8320 (Primary Number)
    24th October, 2024



              1 800 120 1221 (Toll free number)



              USA - 07:30 AM                     
     Toll free number


              (Eastern Time - New York)                             18667462133



              UK - 12:30 PM                      
     Toll free number


              (London Time)                                         08081011573



              Singapore - 07:30 PM               
     Toll free number


              (Singapore Time)                                       8001012045



              Hong Kong - 07:30 PM               
     Toll free number


              (Hong Kong Time)                                        800964448



              Express Join with Diamond Pass(TM)   Please use this link for prior registration to reduce wait time at the time of
                                                     joining the call - Click Here

About Piramal Pharma Limited:

Piramal Pharma Limited (PPL, NSE: PPLPHARMA I BSE: 543635), offers a portfolio of differentiated products and services through its 17* global development and manufacturing facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organization; Piramal Critical Care (PCC), a complex hospital generics business; and the India Consumer Healthcare business, selling over-the-counter consumer and wellness products. In addition, one of PPL's associate companies, Abbvie Therapeutics India Private Limited, a joint venture between Abbvie and PPL, has emerged as one of the market leaders in the ophthalmology therapy area in the Indian pharma market. Further, PPL has a strategic minority investment in Yapan Bio Private Limited, that operates in the biologics / bio-therapeutics and vaccine segments. In October 2020, PPL received a 20% strategic growth investment from the Carlyle Group.

For more information, visit: Piramal Pharma | LinkedIn

* Includes one facility via PPL's minority investment in Yapan Bio

Logo: https://mma.prnewswire.com/media/2538752/Piramal_Pharma_Limited_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/piramal-pharma-limited-announces-results-for-q2-and-h1-fy25-302284950.html

SOURCE Piramal Pharma Ltd