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.

Piramal Pharma Limited (PPL) has announced the sale of its decommissioned unit in Thane to Global Pharma, marking a strategic move in its asset management. The Administrative Committee of PPL has approved the transaction, which is valued at approximately Rs. 8.50 crores, exclusive of applicable taxes.

Transaction Details

Background and Implications

The decision to sell the Thane unit comes after the termination of a previous memorandum of understanding (MOU) due to unfulfilled conditions and commercial reasons. PPL had earlier extended the timelines for the proposed sale, as indicated in their intimation dated 31st January.

Financial Impact

PPL has emphasized that the sale will have no impact on the company's operations. The decommissioned unit contributed nil to the company's:

• Turnover
• Income
• Net worth

in the last financial year, underscoring the strategic nature of this divestment rather than any operational significance.

Regulatory Compliance

The company has assured stakeholders that the transaction adheres to regulatory standards:

• The buyer, Global Pharma, is unrelated to PPL's promoter or promoter group.
• The sale does not qualify as a Related Party Transaction.

Market Implications

While the sale represents a relatively small transaction in terms of value, it reflects PPL's ongoing efforts to streamline its asset portfolio. The move aligns with broader industry trends of optimizing operational efficiency and focusing on core assets.

Investors and market watchers may view this development as a positive step towards resource optimization, although the immediate financial impact is expected to be minimal given the unit's non-contribution to the company's financials.

As Piramal Pharma Limited continues to refine its operational footprint, stakeholders will likely keep a close eye on any further strategic moves that could shape the company's future performance and market position.