Piramal Pharma Limited , a leading global pharmaceutical and health and wellness company, has announced its financial results for the first quarter, ending June 30. The company reported a mixed performance across its business segments while reaffirming its ambitious growth targets for FY2030.

Q1 Financial Highlights

• Revenue from Operations stood at ₹1,934.00 crores, a slight decrease of 1% compared to ₹1,951.00 crores in the same quarter of the previous year.
• EBITDA margin declined to 9% from 11% in the same quarter last year.
• Net loss after tax (including exceptional item) improved to ₹82.00 crores, compared to a loss of ₹89.00 crores in the same period last year.

Segment Performance

Contract Development and Manufacturing Organization (CDMO)

The CDMO business reported revenue of ₹997.00 crores, down 6% year-on-year. However, excluding the impact of destocking in one large on-patent commercial product, the segment delivered mid-teen revenue growth. The growth was primarily led by overseas facilities, accompanied by year-on-year improvement in their profitability.

Complex Hospital Generics (CHG)

CHG revenue grew marginally by 1% to ₹637.00 crores. The company expects growth to pick up in the remaining part of the year, given the timing of some institutional orders.

Piramal Consumer Healthcare (PCH)

The PCH segment showed strong growth, with revenue increasing by 15% to ₹302.00 crores. This growth was driven by power brands and e-commerce sales.

Strategic Developments

• Successfully closed a U.S. FDA inspection at the Aurora facility in Canada with zero observations.
• Broke ground on a capacity expansion project at the Lexington facility in the US, which is expected to boost the company's integrated ADC (Antibody-Drug Conjugate) development and manufacturing program.
• Received U.S. FDA approval for the Digwal facility in India as a Sevoflurane API and finished product manufacturing site for both human and veterinary use.

FY2030 Aspirations Reaffirmed

Nandini Piramal, Chairperson of Piramal Pharma Limited, stated, "Withstanding the near-term challenges, we believe we are on track to achieve our FY2030 aspirations of becoming a US$2bn revenue company with 25% EBITDA margin and high-teen ROCE."

The company's strategic goals for FY2030 include:

1. CDMO: Targeting US$1.2 billion in revenues with approximately 25% EBITDA margin.
2. Complex Hospital Generics: Aiming for US$600 million in revenues with 25%+ EBITDA margin.
3. Consumer Healthcare: Targeting US$200 million in revenues with double-digit EBITDA margin.

Outlook

While facing some near-term challenges, particularly in the CDMO segment due to incomplete recovery in biotech funding, Piramal Pharma remains focused on its long-term growth strategy. The company continues to invest in capacity expansion, new product launches, and operational excellence initiatives to drive future growth and profitability.

As Piramal Pharma navigates through the current market dynamics, its diversified business model and strategic investments position it to capitalize on long-term opportunities in the global pharmaceutical and healthcare markets.

Employee Stock Option Grant

In a separate announcement, Piramal Pharma's Nomination and Remuneration Committee approved the grant of 20,20,507 stock options under its Employee Stock Option and Incentive Plan 2022. These options, with an exercise price of ₹10.00 per option, will vest over three years, demonstrating the company's commitment to aligning employee interests with long-term shareholder value creation.

Piramal Pharma Limited announced its financial results for the first quarter, revealing a mixed performance with standalone profit but a consolidated loss.

Standalone Performance

On a standalone basis, Piramal Pharma reported robust figures:

• Revenue from operations: Rs. 969.88 crores
• Net profit: Rs. 113.14 crores
• Earnings per share: Rs. 0.85

Consolidated Results

The consolidated results, however, painted a different picture:

• Revenue from operations: Rs. 1,933.71 crores
• Net loss: Rs. 81.70 crores
• Negative earnings per share: Rs. 0.62

Key Highlights

• Exceptional Item: The consolidated results included an exceptional gain of Rs. 20.74 crores related to settlement proceeds from an insolvency case involving a supplier.

• Revenue Growth: Despite the consolidated loss, the company's revenue from operations showed resilience with only a marginal 1% year-on-year decline from Rs. 1,951.00 crores to Rs. 1,934.00 crores.

• Segment Performance:

• EBITDA: Consolidated EBITDA stood at Rs. 165.00 crores, with an EBITDA margin of 9%, down from 11% in the same quarter last year.

Management Commentary

Nandini Piramal, Chairperson of Piramal Pharma Limited, commented on the results: "Excluding the impact of destocking in one large on-patent commercial product, our CDMO business delivered mid-teen revenue growth during the quarter accompanied by improvement in EBITDA margin, especially at our overseas sites. Growth in our CHG business is also expected to pick up for the remaining part of the year given the timing of some of the institutional orders. Our consumer business delivered healthy growth, in-line with our expectations, driven by power brands and e-commerce sales."

Business Segment Highlights

CDMO Business

• Mid-teens growth in base business, excluding impact of destocking in one large product
• Successfully closed USFDA inspection at Aurora (Canada) facility with zero observations
• Broke ground for capacity expansion project at Lexington (US) facility

Complex Hospital Generics

• Inhalation Anesthesia segment faced slower growth due to phasing of institutional orders
• Received USFDA approval for Digwal (India) facility as Sevoflurane API and finished product manufacturing site
• Launched Neoatricon® in select EU markets

Piramal Consumer Healthcare

• Power Brands grew 18% YoY, contributing 49% to total PCH sales
• E-commerce sales grew 41% YoY, contributing 23% to PCH sales
• Launched 7 new products

Future Outlook

Despite near-term challenges, the company remains optimistic about achieving its FY2030 aspirations of becoming a US$2 billion revenue company with a 25% EBITDA margin and high-teen ROCE.

The Board meeting was held on July 28, and the results were reviewed by statutory auditors Deloitte Haskins & Sells LLP. Piramal Pharma continues to focus on its long-term strategy while navigating the current market dynamics.