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Piramal Pharma Limited Announces Q4 and FY2025 Results

Piramal Pharma Limited, a renowned global player in pharmaceuticals and wellness, recently unveiled its financial results for the Fourth Quarter (Q4) and the Full Year (FY) ending March 31, 2025. The company's performance reflects robust growth across multiple sectors and solidifies its position in the market.

Financial Highlights

In Q4FY25, revenues reached ₹2,754 crores, marking an 8% increase from ₹2,552 crores in the previous year. For the entire fiscal year, revenues surged 12%, totaling ₹9,151 crores compared to ₹8,171 crores in FY24. The key contributors to this performance were the Contract Development and Manufacturing Organization (CDMO) and the Complex Hospital Generics (CHG) segments.

• - CDMO Growth: The revenue from the CDMO segment grew by 15% year-on-year, reflecting significant demand in on-patent commercial manufacturing. The total revenue for this sector reached ₹5,447 crores, up from ₹4,750 crores last year.
• - CHG and ICH Developments: The CHG division also made strides with a 8% increase, leading to revenues of ₹2,633 crores. The India Consumer Healthcare (ICH) segment crossed a significant milestone of ₹1,000 crores, boasting a 20% growth.

Profitability Metrics

Piramal Pharma's EBITDA for Q4FY25 was ₹603 crores with margins holding steady at 22%. For the full year, EBITDA reached ₹1,580 crores, representing a growth of 15% year-on-year. The company also reported a 52% increase in net profits after exceptional items, totaling ₹154 crores, supported by strategic operational efficiencies.

Moreover, the net-debt-to-EBITDA ratio improved significantly from 5.6x in FY23 to 2.7x by the end of FY25. This improvement showcases the company’s strong financial discipline and ability to manage its debt effectively.

Strategic Insights from Leadership

Nandini Piramal, Chairperson of Piramal Pharma Limited, expressed her satisfaction with the company's performance, highlighting the accomplishment of crossing the $1 billion revenue mark for FY25. She pointed out that the company maintained a balance between investing for future growth and managing its financial responsibilities effectively.

“FY25 has proven to be a solid year for us, with not only substantial revenue growth but also a significant increase in our net profits,” Piramal remarked.

The chairperson emphasized the company’s focus on innovation, particularly within the CDMO business. Notably, the innovation-related work contributed to 54% of CDMO revenues this fiscal year, a substantial increase from 50% in FY24.

Significant Developments

Piramal’s expansion strategy has seen impressive results, including:

• - A successful commercial manufacturing push for patented drugs, boosting revenues significantly.
• - Enhancements in sustainability practices, reflected in improved ESG scores from SP Global and EcoVadis.
• - Continued leadership in the inhalation anesthesia market, maintaining a 44% market share in Sevoflurane in the U.S.

Conclusion

In conclusion, Piramal Pharma Limited's financial results for FY2025 underscore its operational excellence and commitment to growth. As the company looks forward, Piramal has set ambitious targets aiming for $2 billion revenues by FY2030, along with a goal to enhance EBITDA margins to 25%. The ongoing investment in innovation and consumer health segments will be pivotal in achieving these future aspirations.

With a strong foundation laid in FY25, Piramal Pharma is poised for an exciting phase of growth and innovation in the coming years.