Piramal Pharma looks to the next few months with cautious optimism, says Nandini Piramal
Piramal Pharma is approaching the next few months with “cautious optimism”, given the geopolitical uncertainty and directives from the new administration in the United States.
Customers continue to look for a diversified supply chain, said Nandini Piramal, Chairperson, Piramal Pharma,adding, “we have capacity available in the US across API (active pharmaceutical ingredients), formulations and we’re doing an upgrade and expansion of capacity in our Lexington facility for injectables. So, we do have capacity available for those that would want to shift to the US,” Piramal told businessline. She was responding to a query on signals from the US, as President Trump indicated higher tariffs on imported products including pharmaceuticals, as a step to bolster their local production.
More RPFs
On the overall biotech landscape, Piramal said, “biotech funding has improved over the last year, but it is just enough to continue current projects, it’s not enough to start new things …we should see (how) that plays out over the next few months so I’d say cautious optimism there.” And while the company was seeing more RFPs (request for proposals), she said, “people are taking time to decide.”
Commenting on the company’s financial performance (Q3) ended December 31, 2024, and the outlook for the last quarter, Piramal said, “we would end the year with early teens in terms of revenue growth and significant improvements in EBITDA and in PAT (profit after tax). … the fourth quarter is generally very good and that’s when you get your fixed cost leverage that comes out. …we’ll see more improvement in PAT as we get to next quarter.” Further, she pointed out, “the complex hospital generics business and the consumer healthcare are reasonably steady more or less throughout the year, the CDMO (contract development and manufacturing organization) has swings and that’s really because of the ordering pattern of customers that often want delivery in the first quarter of the year as they plan the year.”
Q3 performance
The company’s revenue from operations stood at ₹2,204 crore in the period under review, up 13 per cent from ₹1,959 crore in the same period last year. PAT was down 64 per cent for the period under review at ₹4 crore, compared to ₹10 crore last year.
Further, she pointed out in a statement,FY25 had been steady for the company with EBITDA growing at 20 per cent. “Our CDMO business continues to deliver robust performance with 18 per cent revenue growth along with EBITDA margin improvement in 9MFY25 (for nine months) . This performance was largely led by innovation-related work. Our CHG (complex hospital generics) business registered an early-teen revenue growth during the quarter on the back of strong volume growth in our Inhalation Anaesthesia portfolio. In our ICH (India consumer health) business, power brands continue to register about 19 per cent growth,” she said.
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