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Piramal Pharma Ltd has announced a strong start to FY25, driven by robust performance across its key business segments. The company's revenue grew by 12% year-on-year (YoY), reaching INR 19,511.40 million in Q1 FY25, demonstrating consistent growth momentum. This growth was largely attributed to the strong performance of the CDMO (Contract Development and Manufacturing Organisation) business, which saw an 18% YoY increase in revenue. The CDMO segment continues to benefit from the increasing demand for commercial manufacturing of on-patent molecules, signifying a positive trend in the pharmaceutical outsourcing market.
Beyond the CDMO business, Piramal Pharma's India Consumer Healthcare segment also witnessed impressive growth, driven by new product launches and the strong performance of established power brands like Lacto Calamine and Little’s. These factors contributed to the overall revenue growth and highlighted the company's strategic focus on expanding its presence in the Indian consumer market. The company also saw strong demand for its complex hospital generics, particularly sevoflurane and isoflurane, in the U.S. and emerging markets. However, price reductions in the U.S. market impacted overall growth in this segment.
A notable highlight of Piramal Pharma's Q1 FY25 results was the significant improvement in its EBITDA margin, which rose to 11% from 10% in Q1 FY24. This improvement reflects the company's effective cost optimization initiatives and operational efficiencies. Furthermore, Piramal Pharma has successfully reduced its net debt-to-EBITDA ratio from 5x in Q1 FY24 to 2.8x in Q1 FY25, indicating progress in its financial health. The company's commitment to sustainability is evident in its recognition as one of the top sustainable organizations in India by Times Now Global Sustainable Organizations for 2024. This recognition underscores Piramal Pharma's dedication to environmental, social, and governance (ESG) principles.
Looking ahead, Piramal Pharma remains optimistic about its future growth prospects across all its business lines. The company has reaffirmed its FY25 guidance, aiming for early teens YoY growth in revenue and absolute EBITDA. This positive outlook is driven by the company's continued investments in research and development (R&D), capacity expansion, and sustainability initiatives. These strategic investments are expected to fuel long-term value creation for the company and its stakeholders.
In conclusion, Piramal Pharma's Q1 FY25 results showcase a strong foundation for continued growth and profitability. The company's focus on cost optimization, quality compliance, and sustainability positions it well to navigate the evolving pharmaceutical landscape and deliver sustainable value to its stakeholders. The positive financial performance, combined with its commitment to innovation and social responsibility, suggests that Piramal Pharma is well-equipped to capitalize on growth opportunities in the coming years.
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