Piramal Pharma (PPLPHARMA) Q2 24/25 earnings summary

Executive summary

• Achieved 17% year-on-year revenue growth in Q2 FY25, with consolidated revenue at ₹2,241.75 crore and EBITDA margin expanding by 150 basis points to 18%.

• Net profit after tax for Q2 FY25 was ₹22.59 crore, compared to a net loss of ₹93.56 crore in Q2 FY24; PAT improved significantly to ₹23 crore in Q2 FY25.

• Growth was driven by strong performance in CDMO, Complex Hospital Generics (CHG), and India Consumer Healthcare (ICH) businesses.

• Released FY24 sustainability report, aligning with global standards and committing to greenhouse gas reduction.

• Standalone net profit after tax for Q2 FY25 was ₹210.06 crore, up from ₹77.16 crore in Q2 FY24.

Financial highlights

• Q2 FY25 revenue from operations was ₹2,242 crore, up 17% year-on-year; H1 FY25 revenue was ₹4,193 crore, up 15% year-on-year.

• Q2 FY25 EBITDA was ₹403 crore, up 28% year-on-year; H1 FY25 EBITDA was ₹627 crore, up 29% year-on-year.

• CDMO business revenue grew 24% year-on-year, marking the sixth consecutive quarter of strong growth and margin expansion.

• Power brands in ICH delivered 18% growth, now contributing 48% of ICH sales.

• Net debt reduced to ₹3,932 crore as of September 30, 2024, from ₹4,235 crore as of March 31, 2024.

Outlook and guidance

• Reiterated annual guidance of early teens growth in revenue and EBITDA, with meaningful improvement in CHG.

• Strategic goal to achieve over $2 billion in revenue and 25% EBITDA margin by FY2030, with net debt to EBITDA ratio of ~1x.

• H2 EBITDA expected to be higher than H1, with Q4 typically the largest quarter.

• Plans to more than double revenues and triple EBITDA by FY2030, targeting early teens PAT margins and high teens ROCE.

• Management and auditors confirm compliance with Indian Accounting Standards and regulatory requirements.