- 24 Oct 2024
- ICICI Securities
PIRAMAL PHARMA Q2FY25- CDMO CONTINUES TO PROVIDE STRONG MOMENTUM
News: Revenues grew ~17% YoY to ₹ 2242 crore on the back of ~24% growth in the CDMO business (59% of sales) to ₹ 1324. Complex Hospitals Generics (29% of sales) on the other hand grew 9% to ₹ 643 crore and India Consumer Business (12% of sales) grew ~8% to ₹ 277 crore. EBITDA grew ~29% YoY to ₹ 342 crore with 134 bps margin expansion to 15.2% driven by better operating leverage and despite 216 bps de-growth in GPM.
Views: CDMO business was driven by order inflows, especially for on-patent commercial manufacturing. The company also witnessed good demand for differentiated offerings with increase in customer enquiries and visits. In India Consumer Business, growth was driven by new launches and 18% growth in power brands. In Complex Hospitals Generics, the growth was driven by volume growth in inhalation anesthesia portfolio in the US and emerging markets. Overall, we expect CDMO momentum to continue which remains key for the improvement in overall financials.
Impact: Positive