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Piramal Pharma Limited Reports Q3 and FY25 Performance

Piramal Pharma Limited (NSE: PPLPHARMA), a prominent name in the global pharmaceuticals and wellness industry, recently disclosed its individual and consolidated financial results for the third quarter and the initial nine months of the fiscal year 2025. This period has marked significant strides in revenue generation and operational efficiency.

Financial Highlights

For the quarter ending December 31, 2024, the company's operational income climbed to ₹2,204 crore, reflecting a 13% year-on-year growth compared to ₹1,959 crore from the prior period. In the first nine months of FY25, the income also surged by 14%, reaching ₹6,397 crore against ₹5,619 crore in the previous year. This growth can be attributed to the bustling Contract Development and Manufacturing Organization (CDMO) segment, which reported an 18% increase in revenue, paired with notable performances in both Critical Care and India Consumer Healthcare sectors.

EBITDA Growth

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a robust uplift, growing by 20% during the first nine months, climbing to ₹977 crore from ₹815 crore. This was supported by operational leverage and strategic cost management initiatives, despite a slight drop in EBITDA margin from 17% to 16% for the quarter.

Major Business Segments

CDMO Performance

The CDMO division continues to shine, exhibiting a 13% revenue increase in Q3FY25, primarily driven by the ongoing momentum in commercial manufacturing of patented and generic products. The company is making substantial investments in capacity expansion and has actively engaged in business development to boost contract bids, although client decision-making times are elongating.

Critical Care (CHG) Growth

The Critical Care segment particularly noted significant volume growth, especially in inhalation anesthetics, solidifying Piramal’s position in the U.S. market. The company maintained leading market shares, with over 40% in Sevofluran and 70% in intrathecal Baclofen, further expanding its operational capabilities with planned capacity enhancements.

India Consumer Healthcare (ICH)

In the ICH segment, despite a cautious consumer demand, the company achieved a notable 19% revenue growth within the first nine months. This segment's success stemmed from innovation and a robust performance of key brands like Little's and Polycrol.

Commitment to Sustainability

A significant highlight during this period was the company's transition from coal-fired boilers to biomass briquettes in its Digwal facility, aiming to cut greenhouse gas emissions by approximately 24,000 tons annually. These efforts underscore Piramal's dedication to sustainable production practices and reducing its carbon footprint, aligning with global environmental goals.

Future Outlook

Nandini Piramal, Chairperson of Piramal Pharma Limited, expressed satisfaction with the company's stability in FY25 thus far, emphasizing continued revenue and EBITDA growth. The strong performance in the CDMO sector and commitment to sustainability demonstrate the company’s strategic direction aimed at fostering long-term success.

As Piramal Pharma progresses, it maintains a focus on innovation and strategic expansion, projecting optimistic prospects for the latter part of the fiscal year.

Investor Communication

Piramal Pharma will hold a conference call on January 29, 2025, from 5:30 PM IST to discuss its Q3 and FY25 results, signaling its commitment to transparency and communication with investors.

This optimistic overview solidifies Piramal Pharma’s ongoing efforts in the pharmaceutical landscape, rooted in strong operational performance, sustainability initiatives, and an unwavering commitment to quality and growth.