Piramal Pharma (PPLPHARMA) Q4 22/23 earnings summary

Executive summary

• FY2023 revenue from operations rose 7.97% YoY to ₹7,081.55 crore, while consolidated EBITDA fell 30.36% to ₹853.35 crore and net results swung to a ₹186.46 crore loss.

• The demerger and October 19, 2022 listing established an independent business focused on CDMO, Complex Hospital Generics and India Consumer Healthcare.

• Reported EBITDA margin was 12%; adjusted for non-recurring demerger inventory margin and provisions, it was 15%.

Financial highlights

• Revenue from operations increased 7.97% YoY to ₹7,081.55 crore; total income was ₹7,306.66 crore.

• Total expenses grew 16.90% to ₹7,474.18 crore; cost of goods sold included a one-time ₹68 crore demerger inventory-margin impact.

• EBITDA was ₹853.35 crore, down 30.36%; net loss was ₹186.46 crore versus net profit of ₹375.96 crore in FY2022.

• Finance costs rose 73.61% to ₹344.18 crore, reflecting higher average borrowings and interest rates; employee benefits expense rose 19.36% to ₹1,896.35 crore.

Outlook and guidance

• Order inflows strengthened significantly in Q4 FY2023 after slower bookings during the first nine months, supporting expectations for revenue growth.

• Near-term growth levers include capacity expansions at Riverview, Turbhe and Grangemouth, plus a 25+ SKU Complex Hospital Generics pipeline.

• Injectable anaesthesia and pain-management production ramped up toward year-end after CMO transition constraints; improved supplies were expected in FY2024.

• Cost optimisation, procurement measures and operational excellence were underway to offset inflation and improve profitability.