Piramal Pharma Limited Announces Results for Q4 and FY2024

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10 May, 2024, 17:51 GMT

MUMBAI, India, May 10, 2024 /PRNewswire/ -- Piramal Pharma Limited (NSE: PPLPHARMA) (BSE: 543635), a leading global pharmaceuticals company, today announced its standalone and consolidated results for the Fourth Quarter (Q4) and Full Year (FY) ended 31^st March 2024.

Consolidated Financial Highlights
(In INR Crores)
Particulars	Q4 FY24	Q4 FY23	YoY Growth	FY24	FY23	YoY Growth
Revenue from Operations	2,552	2,164	18 %	8,171	7,082	15 %
CDMO	1,649	1,281	29 %	4,750	4,001	19 %
Complex Hospital Generic (CHG)	667	702	(5) %	2,449	2,286	7 %
India Consumer Healthcare (ICH)	238	210	14 %	985	874	13 %
EBITDA^#	556	376	48 %	1,372	853	61 %
EBITDA Margin	22 %	17 %		17 %	12 %
PAT (before exceptional item)	132	50	163 %	81	(180)	NA
Exceptional Item*	(31)	0	NA	(63)	(7)	NA
PAT (after exceptional item)	101	50	102 %	18	(186)	NA
# FY2023 EBITDA had one-time inventory margin impact of INR 68 Crores
* Q4 FY24 Exceptional item of INR 31 Crores towards non-cash write down of investment and license rights in relation to a certain third-party product no longer being commercialized

Key Highlights for Q4 and FY2024

Revenue from Operations grew by 18% YoY and 15% YoY in Q4FY24 and FY24 respectively, driven by healthy growth in our CDMO and ICH businesses
EBITDA grew by 48% YoY and 61% YoY in Q4FY24 and FY24 respectively, primarily driven by revenue growth, operating leverage, cost optimization, and operational excellence initiatives
Net Profit After Tax (before exceptional Items) more than doubled in Q4FY24 at INR 132 Crores compared to INR 50 Crores in Q4FY23
Net Debt / EBITDA improved from 5.6x at the start of the financial year to 2.9x at the end of FY24

Nandini Piramal, Chairperson, Piramal Pharma Limited said, "FY24 has been a strong year for the Company with all round improvement, mainly driven by our CDMO business that delivered a robust 19% YoY revenue growth. We saw significant increase in order inflows, especially for on-patent commercial manufacturing, amidst a difficult biotech funding environment. Contributions from our innovation related work and differentiated offerings also increased in FY24. Capacity expansion at our Grangemouth facility for Antibody Drug Conjugate segment was commercialized and is seeing good customer interest.

In the Inhalation anesthesia business, we continue to maintain our leading position in Sevoflurane in the US market and are expanding our capacities to tap the growing demand in the ROW markets. Our India Consumer Healthcare business is also continuing to perform well with focus on better EBITDA margin.

During the year, we also showed a significant improvement in our profitability with EBITDA margin of 17% (Vs. 12% in FY23). All our three businesses delivered higher EBITDA margins through operating leverage, cost optimization, and operational excellence initiatives. Our Net Debt / EBITDA ratio also improved significantly, as we ended the financial year below 3x compared to 5.6x at the start of the year."

Key Business Highlights for Q4FY24 and FY24

Contract Development and Manufacturing Organization (CDMO):

- Strong Order Inflows: Despite challenging biotech funding environment, our new service order^# inflows in FY24 were significantly higher compared to FY23, especially for commercial manufacturing of on-patent molecules

- Innovation Related Work: Our share of CDMO revenues from Innovation related work increased from 45% in FY23 to 50% in FY24

- On-patent Commercial Manufacturing: Revenue from commercial manufacturing of on-patent molecules more than doubled to $116mn in FY24 compared to $52mn in FY23

- Differentiated Offerings: Revenue contribution from differentiated offerings increased from 37% in FY23 to 44% in FY24

- Integrated Projects: Over 40% of the service order book in FY24 was from integrated projects, highlighting customer preference for integrated service offerings

- Improved Profitability in our CDMO business driven by revenue growth, favorable revenue mix, normalization of raw material cost and cost optimization initiatives

- Best-in-class quality track record – Successfully cleared 36 regulatory inspections and over 170 customer audits in FY24

Complex Hospital Generics:

- Strong Volume Growth: Witnessed strong volume growth in our inhalation anesthesia portfolio in the US and ROW markets, partly offset by lower market prices

- Maintained our #1 Rank* in the US in terms of value market share in Sevoflurane. Also continue to be the leading company in intrathecal Baclofen in the US market

- Expanding our capacities to meeting growing demand of Inhalation anesthesia products in the ROW markets. Also focus on improving output through greater operating efficiencies

- Improved profitability in our CHG business during FY24 mainly led by cost optimization initiatives, yield improvement and better product and market mix

- New Product Pipeline: Launched 4 new injectable products in FY24 in the US and Europe. Building a pipeline of 24 new products which are at various stages of development with current addressable market size of over $2bn

India Consumer Healthcare:

- Power Brands comprising of Lacto Calamine, Littles, Polycrol, Tetmosol and I-range, registered YoY growth of 15% during Q4FY24 and 13% during FY24

- New Product Launches: 27 new products and 24 new SKUs launched during FY24. Over 150 new products and SKUs launched in the last three years

- Improved EBITDA margin in FY24 driven by operating leverage

- Promotional spends during FY24 was at 13% of ICH revenue vs 15% in FY23

- E-commerce grew at about 36% YoY in FY24, contributing 20% to ICH revenue. Presence across 20+ e-commerce platforms including own direct-to-customer website -Wellify.in

#New development and commercial orders. These are over and above the existing multi-year manufacturing relationships

*Source: IQVIA data

Consolidated Profit and Loss Statement
(In INR Crores)
Reported Financials
Particulars	Quarterly					Full Year
Particulars	Q4FY24	Q4FY23	YoY Change	Q3FY24	QoQ Change	FY24	FY23	YoY Change
Revenue from Operations	2,552	2,164	18 %	1,959	30 %	8,171	7,082	15 %
Other Income	26	25	8 %	62	(57) %	175	225	(22) %
Total Income	2,579	2,188	18 %	2,020	28 %	8,347	7,307	14 %
Material Cost	1,014	840	21 %	675	50 %	2,954	2,703	9 %
Employee Expenses	494	474	4 %	524	(6) %	2,030	1,896	7 %
Other Expenses	514	499	3 %	491	5 %	1,991	1,854	7 %
EBITDA^#	556	376	48 %	330	69 %	1,372	853	61 %
Interest Expenses	114	104	10 %	106	8 %	448	344	30 %
Depreciation	196	184	6 %	186	5 %	741	677	9 %
Profit Before Tax	246	87	182 %	38	553 %	183	(168)	NA
Tax	126	45	182 %	9	1,264 %	161	66	144 %
Share of net profit of associates	12	8	55 %	14	(14) %	59	54	9 %
Net Profit after Tax (before exceptional item)	132	50	163 %	42	211 %	81	(180)	NA
Exceptional item*	(31)	0	NA	(32)	NA	(63)	(7)	NA
Net Profit after Tax (after exceptional item)	101	50	102 %	10	902 %	18	(186)	NA
# FY23 EBITDA had one-time inventory margin impact of INR 68 Crore
*Q3FY24 - Related to non-recurring charges towards product recall triggered by a third-party supplier; Q4FY24 - Towards non-cash write down of investment and license rights in relation to a certain third-party product no longer being commercialized

Consolidated Balance Sheet
(In INR Crores)
Key Balance Sheet Items	As at
Key Balance Sheet Items	31-Mar-24	31-Mar-23
Total Equity	7,911	6,774
Net Debt	3,932	4,781
Total	11,843	11,555

Net Fixed Assets	9,106	8,887
Tangible Assets	4,250	3,589
Intangible Assets including goodwill	3,740	3,880
CWIP (including IAUD*)	1,116	1,419
Net Working Capital	2,339	2,307
Other Assets^#	398	361
Total Assets	11,843	11,555
*IAUD – Intangible Assets Under Development
# Other Assets include Investments and Deferred Tax Assets (Net)

Q4 and FY2024 Earnings Conference Call

Piramal Pharma Limited will be hosting a conference call for investors / analysts on 13^th May 2024 from 9:30 AM to 10:15 AM (IST) to discuss its Q4 and FY2024 Results.

The dial-in details for the call are as under:

Event	Location & Time	Telephone Number
Conference call on 13^th May, 2024	India – 09:30 AM IST	+91 22 6280 1461 / +91 22 7115 8320 (Primary Number)
	India – 09:30 AM IST	1 800 120 1221 (Toll free number)
	USA – 12:00 AM (Eastern Time – New York)	Toll free number 18667462133
	UK – 05:00 AM (London Time)	Toll free number 08081011573
	Singapore – 12:00 PM (Singapore Time)	Toll free number 8001012045
	Hong Kong – 12:00 PM (Hong Kong Time)	Toll free number 800964448
Express Join with Diamond Pass™	Please use this link for prior registration to reduce wait time at the time of joining the call –https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=9765638&linkSecurityString=3bb8d8359c

About Piramal Pharma Ltd:

Piramal Pharma Limited (PPL, NSE: PPLPHARMA I BSE: 543635), offers a portfolio of differentiated products and services through its 17 global development and manufacturing facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organization; Piramal Critical Care (PCC), a complex hospital generics business; and the India Consumer Healthcare business, selling over-the-counter products. In addition, one of PPL's associate companies, AbbVie Therapeutics India Private Limited (formerly Allergan India Pvt Ltd), a joint venture between Allergan (now part of AbbVie) and PPL, has emerged as one of the market leaders in the ophthalmology therapy area. Further, PPL has a minority investment in Yapan Bio Private Limited. In October 2020, PPL received a 20% strategic growth investment from the Carlyle Group.

For more information, visit: https://www.piramalpharma.com/, Facebook, Twitter, LinkedIn

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