Piramal Pharma (PPLPHARMA) Q4 23/24 earnings summary

Executive summary

• FY2024 revenue rose 15% YoY to INR 8,171 Cr amid a challenging macro environment; CDMO growth and profitability improvement led performance.

• Q4 revenue increased 18% YoY to INR 2,552 Cr; EBITDA margin expanded to 22% and PAT before exceptional items rose 163% to INR 132 Cr.

Financial highlights

• FY2024 EBITDA was INR 1,372 Cr, up 61% YoY; EBITDA margin improved to 17% from 12%.

• FY2024 PAT before exceptional items was INR 81 Cr versus a loss of INR 180 Cr; PAT after exceptional items was INR 18 Cr versus a loss of INR 186 Cr.

• Q4 FY2024 PAT after exceptional items was INR 101 Cr, including a INR 31 Cr exceptional charge; Q4 FY2023 PAT was INR 50 Cr.

• FY2023 EBITDA included a one-time INR 68 Cr inventory margin impact.

Outlook and guidance

• CDMO plans include expanding Sevoflurane manufacturing lines at Digwal and increasing key starting material capacity at Dahej to strengthen vertical integration.

• Existing inhalation anesthesia facilities were operating at capacity, with focus on operational efficiency and executing planned capacity expansions.

• CHG pipeline includes 24 products at different development stages, with a current addressable market exceeding $2bn.