Shares of Piramal Pharma rose by 11% in the early trade hours of May 13, had reported strong financial results for the fourth quarter of the financial year ending March 2024 (Q4FY24).

As per the company’s recent regulatory filing, the company’s Profit After Tax (PAT) increased by 102% YoY, reaching Rs 101.27 crore. Additionally, the company’s consolidated revenue from operations increased by 18%, amounting to Rs 2,552.36 crore.

The increase in profit has been attributed to the company’s success in its contract development and manufacturing organisation (CDMO) business, along with its differentiated offerings and capacity expansion. 

Sequentially, the company’s profit has risen more than nine-fold, and revenue has increased by 30.31%. The company’s Earnings before Interest, Tax, Appreciation and Amortisation (EBITDA) have also increased significantly by 48% YoY, amounting to Rs 556 crore.

Nandini Piramal, the chairperson of Piramal Pharma, has credited the company’s CDMO business for its substantial growth, which has delivered a robust 19% YoY revenue growth.

The company has seen an increase in order inflows, especially for commercial manufacturing of on-patent molecules, despite a difficult biotech funding environment. Contributions from the company’s innovation-related work and differentiated offerings have also increased in FY24.

The company’s Grangemouth facility for the Antibody Drug Conjugate segment has commercialised capacity expansion and is seeing good customer interest. 

The company’s three businesses have delivered higher EBITDA margins through operating leverage, cost optimization, and operational excellence initiatives.

Piramal Pharma has reported a 15% YoY increase in revenue and has been able to turn around PAT, reaching Rs 8171 crore and Rs 81 crore, respectively, for the full year FY24. The EBITDA has seen a significant increase of 61% at Rs 1,372 crore.

The company has maintained its position as a leader for Sevoflurane in the US market for inhalation anaesthesia and is expanding capacities to meet growing demand in ROW markets. 

The Indian consumer healthcare business continues to perform well, with a focus on enhancing EBITDA margin.

During Q4FY24, the Contract Development and Manufacturing Organization (CDMO) segment has achieved a growth of 29 per cent YoY, mainly due to strong order inflows in the commercial manufacturing of on-patent molecules. 

CDMO has also seen good demand for the company’s differentiated offerings and integrated projects, leading to improved profitability.

The Complex Hospital Generics (CHG) segment has witnessed a growth of 5 per cent YoY, which has been attributed to the volume expansion in the inhalation anaesthesia portfolio within the US market and ROW markets, which has been partly offset by lower market prices.

The company has launched four new injectable products in the US and European markets during FY24. They are also building a strong product pipeline with 24 new injectables under development, targeting a market exceeding USD 2 billion.

The India Consumer Healthcare (ICH) segment has grown by 14 per cent YoY, mainly due to the launch of new products and new Stock Keeping Units (SKUs). 

The division continues to invest in media and trade spending to foster growth in power brands. The power brands, including lacto calamine, littles, polyol, cytosol, and I-range, have registered YoY growth of 15% during Q4FY24 and 13% during FY24.

However, at 3:30 pm, the shares of the company closed 2.69% higher at Rs 154.35 on NSE.