Piramal Pharma Limited (PPL) announced its consolidated results for the first quarter (Q1) ended 30th June 2023. The new financial year has started on a positive note with healthy revenue growth and improvement in EBITDA margins.
Key Highlights for Q1FY24
Revenue from Operation grew by 18% YoY in Q1FY24 driven by broad base performance across
all three businesses – CDMO, CHG and ICH
EBITDA margin in Q1FY24 was 10%, a YoY improvement compared to 6% in Q1FY23, driven by
healthy revenue growth and cost optimization measures
We maintain our quality track record of zero OAIs (Official Action Indicated) as we successfully
closed the US FDA inspection at the Pithampur facility with zero observations
We strengthened our Management Team by appointing Jeffrey Hampton as President & Chief
Operating Officer for Piramal Critical Care (CHG business)
We have shared the details of our Rights Issue – Rights Price of INR. 81, Record Date of August 2,
2023 and Entitlement Ratio of 5:46
Nandini Piramal, Chairperson, Piramal Pharma Limited said, “We had a positive start to the new financial
year with healthy revenue growth and improvement in our EBITDA margins. Our CDMO business is also
witnessing continued order inflows, especially for our differentiated offerings and innovation related work. Our Inhalation Anesthesia portfolio is seeing a healthy demand and our India Consumer Healthcare
business is delivering good growth driven by power brands. We continue to maintain our best-in-class
quality track record and are also taking multiple initiatives in the area of ESG to grow our business
responsibly.
Historically our H2 has been better than H1, both in terms of revenue and profitability. We are working to
leverage our good start to the financial year and continuing this momentum to deliver a healthy YoY
performance for the rest of the year. We believe in the growth potential of our business and are accordingly executing on our strategic priorities to create shareholder value. Our promoter and promoter group have agreed to subscribe to the extent of 100% of the equity shares offered in our Rights Issue, thereby reaffirming their confidence in the underlying strengths of our business”
Key Business Highlights for Q1FY24
Contract Development and Manufacturing Organization (CDMO):
- Witnessed continued order inflow momentum and strong execution in Q1FY24. Continue to
see good demand for our differentiated offering in the niche areas of high potent API, peptide,
anti-body drug conjugate (ADC) and development and manufacturing of on-patent API - Recently expanded capacities at sites with differentiated offering witnessing encouraging
customer demand - Capacity expansion for antibody drug conjugate (ADC) at Grangemouth facility to strengthen
our position in the ADC market - YoY improvement in demand for our generic API business
- Maintained our quality track record – Successfully cleared 8 regulatory inspections (including
an US FDA inspection at our Pithampur facility) and multiple customer audits in Q1FY24 - Cost optimization, strategizing procurement and operational excellence initiatives helping to
mitigate inflationary pressures and improve profitability
Complex Hospital Generics (CHG):
- Continued momentum in Inhalation Anesthesia (IA) sales, mainly led by strong demand for
Sevoflurane - Expanding inhalation anesthesia capacity to meet the growing demand
- Intrathecal portfolio in the US continue to command leading market share
- Building a pipeline of 27+ new products which are various stages of development. Launched 1
new product during Q1FY24 - Appointed Jeffrey Hampton as President & Chief Operating Officer of CHG Business. Jeff has
previously worked with Accord Healthcare, Inc. and Apotex Inc.
India Consumer Healthcare (ICH):
- 11 new products and 3 new SKUs launched during Q1FY24
- Continue to invest in media and trade spends to drive growth in power brands
- Power Brands – Littles, Lacto Calamine, Polycrol, Tetmosol and I-range, grew by 15% YoY in
Q1FY24 and contribute to 43% of ICH sales - E-commerce grew by more than 18% YoY in Q1FY24
- Wide distribution reach across general trade and are also strengthening our presence in
alternate channels of distribution including e-commerce, modern trade, and having our own
direct-to-customer website -Wellify.in
