Piramal Pharma Q1FY25 results; Loss improves to Rs 89 cr; shares jump 3%

Shares of Piramal Pharma rose 3.51 per cent, reaching their 52-week high at Rs 172.10 per share on the BSE in Friday'’s intraday trade. 

The stock movement comes after the company reported its first quarter earnings for the financial year 2024-25 (Q1FY25). 

The company’s net loss improved slightly to Rs 89 crore in Q1FY25 from Rs 99 crore in the corresponding quarter of the previous year. Revenue from operations, meanwhile, rose by 12 per cent year-on-year (Y-o-Y) to Rs 1,951 crore during the quarter under review from Rs 1749 crore in the year ago period.

The revenue was driven by robust high-teen growth in the contract drug manufacturing organisation (CDMO) business and steady double-digit growth in the Indian consumer healthcare (ICH) business.

The company’s CDMO business grew by 18 per cent to Rs 1,057 crore from Rs 898 crore in Q1FY24, while its  complex hospital generic (CHG) business grew by only 2 per cent to Rs 631 crore in the June quarter versus Rs 617 crore in the same quarter last year. Further, the ICH business clocked 10 per cent growth Y-o-Y to Rs 264 crore in Q1FY25 from Rs 239 crore a year earlier. 

On the operating front, the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) grew by 31 per cent Y-o-Y to Rs 224 crore with Ebitda margin of 11 per cent, a Y-o-Y improvement of over 170 basis points versus Q1FY24, driven by operating leverage, cost optimization measures and superior revenue mix, the company said in an exchange filing on Monday. 

On its contract drug manufacturing organisation (CDMO) business, the management said that it is seeing early signs of pick-up in biotech funding, with increase in customer enquiries and visits, especially for differentiated offerings. The company needs few more consistent quarters to establish recovery and continue to witness steady order inflow momentum, particularly for on-patent commercial manufacturing, the management added. 

“Our CDMO business continues to witness sustained order inflows, especially for on-patent commercial manufacturing. We are also seeing good demand for our differentiated offerings with an increase in customer enquiries and visits. In our CHG business, our planned expansion for inhalation anaesthesia portfolio is on track and is expected to get commercialised in FY26. Our India Consumer Healthcare business is also delivering steady growth driven by power brands and strong traction in e-commerce channels,” said Nandini Piramal, Chairperson, Piramal Pharma. 

She further added that historically the company’s second half of the year outperforms the first half, both in terms of revenue and profitability, and she expects this trend to continue in FY25.

The firm has a total market capitalisation of Rs 22,153.25 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 67.92 times with an earning per share of Rs 2.45.

At 01:21 PM; the shares of the company were trading 0.45 per cent higher at Rs 167.00 per share on the BSE. By comparison, the BSE Sensex was up by 1.47 per cent at 81,215 levels.