Piramal Pharma Ltd reported its third quarter profit for the financial year 2023-24 at Rs 10.11 crore as against a loss of Rs 90.18 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 1,958.57 crore, up 14.1 per cent in comparison to Rs 1,715.97 crore during the third quarter of FY23, driven by double digit growth across all the three businesses. The company EBITDA grew by 94 per cent YoY in Q3FY24, primarily driven by operating leverage, reduction in raw material cost and energy prices, cost optimization, and operational excellence initiatives.
Nandini Piramal, Chairperson, Piramal Pharma Limited, said, “We continue to build on our improved performance in FY24 with 14 per cent YoY revenue growth in Q3 along with a significant improvement in EBITDA margin. Our CDMO business is delivering healthy growth with robust order inflows, especially for differentiated offerings and innovation related work. Our Inhalation Anesthesia portfolio is registering good volume growth in our key market of US and is also seeing increasing traction in ROW markets. Our India Consumer Healthcare business is delivering steady growth driven by our power brands and contribution from new product launches.”
On the sustainability front, she added, the company has taken significant reduction targets for the Scope 1, 2 and 3 GHG emissions by FY2030. “We are also working on multiple initiatives in the areas of water conservation, responsible waste disposal, gender diversity, employee safety, sustainable supply chain and community development,” she said.
Piramal Pharma’s Q3 performance across key businesses
Contract Development and Manufacturing Organization (CDMO): The segment reported continued momentum with significant YoY growth in new orders in 9M FY2024 as against 9M FY2023, more specifically in commercial manufacturing of on-patent molecules. “During the quarter we received our first integrated antibody drug conjugate (ADC) order involving monoclonal antibodies. Three sites involved – Lexington, Grangemouth and Yapan,” the company said. Key challenges, it said, included partial recovery in the biotech funding environment and clinical/ regulatory attrition at customer end.
Complex Hospital Generics (CHG): The segment reported volume growth in the inhalation anaesthesia portfolio in the US market, partly offset by lower market prices. The segment witnessed improvement in profitability during Q3 and 9M FY2024 mainly led by cost optimization initiatives, yield improvement and better product and market mix. The pharma company launched 3 new injectable products in Q3 FY2024 in the US and Europe, and is building a pipeline of 25 new products which are at various stages of development with current addressable market size of over $2 billion.
India Consumer Healthcare (ICH): The YoY improvement in EBITDA margin in 9MFY24 was driven by operating leverage, it said. The pharma company launched 6 new products and 3 new SKUs during Q3 FY2024 and over 100 new products between FY21 to FY24. Piramal Pharma continued to invest in media and trade spends to drive growth in power brands. Promotional spends during 9M FY2024 was at 13 per cent of ICH revenue. E-commerce grew at about 17 per cent YoY in Q3 FY2024, contributing 16 per cent to ICH revenue.