Piramal Pharma Q4 Results: Profit Rises, But Misses Estimates

Piramal Pharma Ltd.'s consolidated net profit increased in the fourth quarter of fiscal 2024, but it missed analysts' estimates.

Net profit of the company rose two times year-on-year to Rs 101.27 crore in the quarter-ended March 31, 2024, as compared with Rs 50.11 crore in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had estimated a profit of Rs 208.47 crore.

• Revenue up 17.96% to Rs 2,552.36 crore vs Rs 2,163.58 crore (Bloomberg estimate: Rs 2,481.73 crore).

• Ebitda up 51.08% to Rs 530.73 crore vs Rs 351.27 crore (Bloomberg estimate: Rs 469.43 crore).

• Margin at 20.79% vs 16.23% (Bloomberg estimate: 18.9%).

• Net profit up 2 times at Rs 101.27 crore vs Rs 50.11 crore (Bloomberg estimate: Rs 208.47 crore)

• Revenue from operations grew by 18% YoY and 15% YoY in Q4 FY24 and FY24, respectively, driven by healthy growth in CDMO and ICH businesses.

• Ebitda rose by 48% YoY and 61% YoY in Q4 FY24 and FY24, respectively, primarily driven by revenue growth, operating leverage, cost optimisation and operational excellence initiatives.

• Net debt/Ebitda improved from 5.6 times at the start of the financial year to 2.9 times at the end of FY24.

Contract Development And Manufacturing Organization

• Despite challenging biotech funding environment, new service order inflows in FY24 were significantly higher as compared with FY23, especially for commercial manufacturing of on-patent molecules.

• Share of CDMO revenue from innovation-related work increased from 45% in FY23 to 50% in FY24.

• Improved profitability in CDMO business driven by revenue growth, favourable revenue mix, normalisation of raw material cost and cost optimisation initiatives.

Complex Hospital Generics

• Company witnessed strong volume growth in inhalation anesthesia portfolio in the US and ROW markets, partly offset by lower market prices.

• It is expanding capacities to meet growing demand of inhalation anesthesia products in the rest of world markets.

• Profitability improved in CHG business during FY24, mainly led by cost optimisation initiatives, yield improvement and better product and market mix.

• Launched four new injectable products in FY24 in the US and Europe.

• Company is building a pipeline of 24 new products, which are at various stages of development, with current addressable market size of over $2 billion.

India Consumer Healthcare

• Power brands comprising Lacto Calamine, Littles, Polycrol, Tetmosol and I-range, registered YoY growth of 15% during Q4 FY24 and 13% growth during FY24.

• Launched 27 new products and 24 new SKUs during FY24.

• Ebitda margin improved in FY24, driven by operating leverage.

“FY24 has been a strong year for the company with all-round improvement, mainly driven by our CDMO business that delivered a robust 19% YoY revenue growth. We saw significant increase in order inflows, especially for on-patent commercial manufacturing, amid a difficult biotech funding environment," said Nandini Piramal, chairperson of Piramal Pharma.

Shares of Piramal Pharma closed 1.52% higher at Rs 150.30 apiece on the NSE, as compared with a 0.44% advance in the benchmark Nifty 50.