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Piramal Pharma Limited Announces Q3 and 9M FY25 Results

Piramal Pharma Limited (NSE: PPLPHARMA, BSE: 543635), a prominent player in the pharmaceuticals and wellness sector, has recently shared its financial outcomes for the third quarter (Q3) and the first nine months (9M) of the fiscal year 2025, ending December 31, 2024. Notably, the company's performance reflects a robust trajectory of growth amidst ongoing market challenges.

Financial Overview

Consolidated Financial Highlights
During the reporting period, Piramal Pharma succeeded in generating revenue of ₹2,204 Crore for Q3 FY25, which represents a 13% increase compared to ₹1,959 Crore for the same quarter last year. For the first nine months, the company achieved revenue from operations amounting to ₹6,397 Crore, up 14% from ₹5,619 Crore year-over-year.

• - CDMO (Contract Development and Manufacturing Organization): This segment saw a striking 18% growth, contributing ₹3,659 Crore in 9M FY25.
• - CHG (Complex Hospital Generics): Revenues rose by 8% YoY to ₹1,928 Crore, supported by a spike in demand for inhalation anesthetics.
• - ICH (India Consumer Healthcare): This sector posted a 10% growth with revenues hitting ₹819 Crore, largely driven by its power brands, which recorded a 19% YoY increase.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also registered substantial growth, reaching ₹350 Crore in Q3 FY25, indicating a year-on-year growth of 6%. Meanwhile, over the first nine months, EBITDA soared by 20%, bolstered by operational efficiencies and a favorable revenue mix.

Strong Commitment to Sustainability

Piramal Pharma is not only focused on financial growth but is also taking significant steps towards sustainable operations. In a landmark move, the company has converted its coal-fired steam boiler at the Digwal facility to operate with biomass briquettes—an eco-friendly fuel source. This transition is expected to eliminate approximately 24,000 tonnes of carbon dioxide equivalent emissions per year, which constitutes around 17% of the company's total emissions.

Nandini Piramal, Chairperson of Piramal Pharma Limited, emphasized the consistent performance of the company, signaling a future of steady revenue growth and a commitment to environmental responsibility. The financial health of the company is reflected in its maintained net-debt-to-EBITDA ratio of 2.8x, indicating prudent financial management amidst expansion efforts.

Outlook for the Future

Piramal Pharma's ongoing commitment to innovation, along with strategic capacity expansions in critical operational segments, positions the company favorably for continued growth. The CDMO sector, in particular, is witnessing increased traction due to ongoing efforts in on-patent commercial manufacturing, although the decision-making process among customers has seen some delays.

The Complex Hospital Generics sector is capitalizing on increased demand, maintaining its leading market positions in the U.S. with Sevoflurane and Intrathecal Baclofen, while the Consumer Healthcare segment focuses on expanding its portfolio, launching new products, and enhancing e-commerce strategies to tap into the emerging online market.

Overall, Piramal Pharma Limited is on a promising path, combining robust financial health, strategic growth initiatives, and a strong commitment to sustainability, effectively positioning itself for future success.

Upcoming Investor Call

The company will be hosting a conference call for analysts and investors to discuss these results in detail, providing an opportunity for stakeholders to engage directly with management regarding future prospects.

In conclusion, the latest results from Piramal Pharma Limited showcase not only a sound financial performance but also a proactive approach towards sustainable business practices—crucial factors that will continue to uphold the company’s reputation and operational efficiency moving forward.