Shares of Piramal Pharma soared as much as 5.5 percent in early trade on October 24, a day after the drugmaker reported solid earnings for the July-September quarter, marked by a steep surge in its net profit.
At 09.38 am, shares of Piramal Pharma were trading at Rs 227.29 on the NSE.
The drugmaker's net profit zoomed 3.5 times year-on-year to Rs 22.59 crore in the September quarter, up from Rs 5.02 crore in Q2 FY24.
Piramal Pharma’s CDMO business got a boost from the growing demand for innovation-driven projects. The company also unveiled an $80 million expansion plan for its Lexington facility, set for completion by FY27, positioning itself to meet the rising need for sterile fill-finish capabilities. Sales for its CDMO business, which accounts for 59 percent of total revenue, grew 24 percent on year to Rs 1,320 crore.
In the Consumer Healthcare (CHG) division, steady volume growth in inhalation anesthesia products was reported across the US and Emerging Markets. Meanwhile, in its India Consumer Healthcare (ICH) segment, the company’s power brands and e-commerce sales continued their upward trend.
Aided by these, revenue rose 17.3 percent to Rs 2,241.75 crore compared to Rs 1,911.38 crore in the same period last year. Meanwhile, lower opex also triggered sharp margin expansion in Q2. EBITDA margin swelled up 130 basis points on year to 15.2 percent in the quarter gone by.
"We continue our momentum of delivering healthy revenue growth accompanied by year-on-year EBITDA margin expansion. This has been primarily driven by consistent growth in our Contract Development and Manufacturing Organisation (CDMO) business, which has witnessed a good pick-up in innovation-related work and on-patent commercial revenues," Nandini Piramal, Chairperson of Piramal Pharma said in an exchange filing.
"Over the long term, we remain committed to achieving our financial goals of US$2 billion in revenue with a 25 percent EBITDA margin and 1x net debt/EBITDA by FY30," Piramal further guided.
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