#Sustainability #India #Mumbai #Piramal Pharma #Q3 FY25 Results

Piramal Pharma Limited's Performance Overview for Q3 and 9M FY25

Piramal Pharma Limited recently announced its financial results for the third quarter and the first nine months of the fiscal year 2025, marking a solid performance in both standalone and consolidated results. The company reported significant revenue growth, driven by their Contract Development and Manufacturing Organization (CDMO), Complex Hospital Generics (CHG), and India Consumer Healthcare (ICH) segments.

Financial Highlights and Growth Metrics

In the third quarter of FY25, the company achieved a revenue from operations of ₹2,204 crores, reflecting a 13% increase from ₹1,959 crores in the same quarter of the previous year. For the first nine months of FY25, revenue reached ₹6,397 crores, representing a 14% year-on-year growth compared to ₹5,619 crores in FY24.

• - CDMO Performance: The CDMO segment experienced a robust 18% revenue growth for the nine-month period, primarily fueled by an increased demand for commercial manufacturing and generic API.
• - CHG Contribution: The CHG segment showcased a noteworthy early-teen revenue growth, bolstered by strong sales in their Inhalation Anesthesia portfolio.
• - ICH Segment: The ICH category, despite facing industry-wide tepid consumer demand, delivered double-digit growth in the same time frame, with power brands contributing significantly to sales.

Notably, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable year-on-year increase of 20% for 9M FY25, reaching ₹977 crores, supported by operational efficiencies and better revenue optimization strategies.

Sustainable Practices: A Commitment Towards the Future

In line with global sustainability trends, Piramal Pharma has emphasized its dedication to reducing greenhouse gas emissions. A significant milestone was reached with the conversion of a coal-fired steam boiler at their Digwal facility to operate using biomass briquettes. This transition to a carbon-neutral fuel source is expected to eliminate approximately 24,000 tCO2e of GHG emissions annually, accounting for about 17% of the company’s total emissions.

Nandini Piramal, the chairperson of Piramal Pharma Limited, articulated that the fiscal year has displayed steady performance thus far, with strong revenue growth across their segments driven by innovation and operational excellence.

Sector-Wise Breakdown of Performance

1. Contract Development and Manufacturing Organization (CDMO)

The CDMO business has been a key driver of Piramal Pharma's growth, achieving high-teen revenue growth due to enhanced capacity and targeted business development efforts. The segment has consistently maintained a best-in-class quality record, successfully navigating numerous regulatory inspections.

2. Complex Hospital Generics (CHG)

Inhalation Anesthesia sales in the U.S. have seen healthy growth, with overwhelming demand contributing to the company’s market leading share in various products. The company is actively scaling its capacity to leverage growth opportunities in international markets.

3. India Consumer Healthcare (ICH)

Despite challenges in consumer demand, the ICH segment has shown resilience, with notable growth stories in their established power brands. The company introduced multiple new products and witnessed significant growth in e-commerce sales.

Conclusion and Future Outlook

Piramal Pharma Limited’s strong quarterly performance is not solely driven by numbers; it underscores a robust operational strategy focused on innovation, excellence, and sustainability. As the company continues to strive towards improving its market position while prioritizing environmental responsibility, investors and stakeholders are keenly observing its path forward. The scheduled conference call on January 29, 2025, will offer further insights into the company's future strategies and milestones.

The commitment to sustainable practices hints at a forward-thinking approach essential for navigating the future landscape of the pharmaceuticals industry, making Piramal Pharma a prominent player to watch in the coming years.