Piramal Pharma Q2 Results: Piramal Pharma post net loss of Rs 37 crore in Q2FY23

Piramal Pharma on Wednesday posted a net loss of ₹37 crore for quarter ended September 30 due to slump in growth of contract development and manufacturing services (CDMO) on account of macro-economic pressure in US and Europe markets.

The company had posted a net profit of ₹37 crore in the corresponding period of the previous year.

It was the company's first ever results since it was demerged from parent Piramal Enterprises and listed separately.

Piramal Pharma revenue from operations grew 9% to Rs 1,720 crore during Q2FY23 compared to Rs 1,578 crore in Q2FY22.

The earnings before interest, tax, depreciation and ammortisation (EBITDA) rose 2% YoY to Rs 219 crore in Q2FY23. The EBITDA margin dropped 100 basis points YoY to 13%.

The CDMO business, which contributes about 55% of company's revenues, rose 2% YoY to Rs 940 crore.

The company said it was witnessing continued strong inflows of request for proposal (RFP) and increase in customer audits. But it is experiencing slower decision making by customers due to macro-economic pressures

Piramal said it is undertaking judicious price increases, cost optimization and operational excellence measures to offset inflationary pressures

The complex hospital generic business that contributes one-third of revenues grew 12% YoY to Rs 562 crore. Piramal said it is witnessing strong inhalation anesthesia (IA) sales in the US market with continued volume growth driving market share gains. The company added IA capacities in India to serve the growing demand from non-US markets.

The India consumer healthcare division increased 21% YoY to Rs 227 crore.

“For the quarter and half year ended September 2022, our business has delivered a resilient performance despite multiple internal and external challenges," said Piramal Pharma chairperson, Nandini Piramal.

"We expect to deliver a much-improved performance in the second half of the current financial year. Historically, we have had a greater skew of sales and profits in the second half of the year and this year is no different,” she added.