Piramal Pharma , a leading pharmaceutical company, has reaffirmed its commitment to growth targets despite facing short-term challenges in the US market. The company maintains its guidance for mid-single-digit revenue growth and mid-teen EBITDA margins, showcasing confidence in its long-term strategy.

Seasonal Patterns and Future Outlook

Chairperson Nandini Piramal acknowledged that the company typically experiences a softer April-June quarter. However, she expressed optimism about increased demand in the second half of the year. This seasonal pattern aligns with the company's broader growth strategy.

Ambitious 2030 Target

Despite current market challenges, Piramal Pharma remains steadfast in its ambitious 2030 target:

This long-term goal underscores the company's confidence in its business model and growth potential.

CDMO Business Performance

The Contract Development and Manufacturing Organization (CDMO) segment of Piramal Pharma demonstrated resilience:

• Mid-teens growth, excluding de-stocking events
• Broad pickup in growth across US and UK markets

New Facility in Telangana

Piramal Pharma has expanded its manufacturing capabilities:

• New site brought online in Digwal, Telangana at the end of April
• Registrations expected throughout the year

This strategic expansion is poised to support the company's growth objectives.

Consumer Health Segment

The consumer health division showed promising results:

• Growth led by power brands and e-commerce
• Focus on promotions and value-for-money products for Indian consumers

This approach demonstrates Piramal Pharma's adaptability to consumer needs in the Indian market.

Navigating US Market Challenges

While the company faces short-term challenges in the US market due to uneven biotech funding, management remains confident in its ability to navigate these hurdles. The diversified business model and focus on multiple growth drivers appear to be key factors in maintaining this positive outlook.

Piramal Pharma's reaffirmation of its guidance and long-term targets, coupled with its strategic initiatives across various business segments, indicates a robust approach to growth despite current market dynamics. As the company continues to adapt and expand, investors and industry observers will be watching closely to see how these strategies unfold in the coming quarters.

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.