Piramal Pharma Ltd reported a profit of Rs 22.59 crore in its second quarter earnings on Wednesday, a 350.0 percent increase over the previous year compared to Rs 5.02 crore recorded in the same quarter of FY24. Revenue from operations was recorded at Rs 2241.75 crore in Q2 compared to Rs 1911.38 crore during the previous financial period.
The company recorded an EBITDA of Rs 341.6 crore, marking a 28.5 percent year-on-year increase, with an EBITDA margin of 18 percent, representing a year-on-year improvement of approximately 150 basis points. This growth was propelled by operating leverage, cost optimization efforts, and a better revenue mix.
Piramal Pharma reported that its focused efforts on business development have led to a consistent increase in new orders, with a year-on-year growth in the generic API business. In addition, the company is experiencing ongoing year-on-year enhancements in EBITDA margins due to operational efficiency and cost-saving measures.
CHG experienced strong growth in its inhalation anesthesia portfolio in the US and emerging markets. Dahej and Digwal are undergoing capacity expansion to seize growth opportunities in the RoW markets. Piramal Pharma is implementing various cost optimization and productivity enhancement initiatives in sourcing, manufacturing, distribution, and operational excellence to sustain a healthy EBITDA margin in this business.
Piramal Pharma expanded its portfolio in H1FY25 by introducing 9 new products and 13 new SKUs and continued investing in media and trade spends to boost the growth of its Power Brands. During Q2 and H1 FY25, Power Brands witnessed an 18 percent YoY growth and accounted for 48 percent of ICH sales. The growth of i-range was negatively affected by price reductions mandated by regulators. Additionally, e-commerce experienced a growth of over 30 percent YoY in Q2 and H1 FY25. Piramal Pharma aims to broaden its market presence and shift from being predominantly pharmacy-based to becoming 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. 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$80 million expansion plan at our Lexington facility which is expected to get complete by the 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.”
Over the long term, Nandini Piramal added, the company remains committed to achieving its financial goals of $2 billion revenue with 25 per cent EBITDA margin and 1x net debt / EBITDA by FY30.