Piramal Pharma -
Q3 FY 24 results and concall highlights -
Revenues - 1959 vs 1716 cr, up 14 pc
EBITDA - 576 vs 514 cr, up 94 pc ( margins @ 17 vs 10 pc - huge improvement )
PAT ( before exceptional item ) - 35 vs (-) 90 cr
EBITDA margin expansion led by better operating leverage, lower RM prices, cost optimisation initiatives
Segment wise revenues -
CDMO - 1134 vs 1010 cr
Complex Hospital Generics (CHG) - 567 vs 514 cr
India Consuer Health (ICH ) - 252 vs 226 cr
Company seeing good traction in CHG business even in Mkts outside US
All of company’s recently inspected CDMO facilities received EIRs from USFDA
Company seeing good demand traction for innovation related and on-patent work in its CDMO division ( specially for the molecules in the commercial stages )
Company launched 03 new generic injectable products in US and EU in Q3. Have a product pipeline of 25 more generic injectables in various stages of development
Maintained media and advertisement spends at 13 pc for their ICH business ( these r unusually high levels - should reduce going fwd )
Power brands ( in ICH ) - I-Range, Littles, Tetmosol, LactoCalamine, Polycrol grew by 12 pc and contributed to 41 of ICH sales
E-Commerce contribute 17 pc of ICH sales
Company received first oder for Anti-Body drug conjugates involving monoclonal antibodies
Company is maintaining its Mkt leadership in Intrathecal Baclofen ( 78 pc mkt share ) and Sevoflurane ( 44 pc mkt share ) in US mkt
Q4 is generally the strongest Qtr. Same is likely to continue for this FY as well
At present, 35 molecules are in Phase -III in the company’s CDMO pipeline
Steady state gross margins for the company are in the range of about 65 pc
As the scale of operations increase, company expects further improvement in EBITDA margins
Expect capex intensity to reduce going fwd vs last 2 yrs
The OnPatent: Generic split in the company’s CDMO business is at 45:55 with a tendency towards increase in the OnPatent work with every passing year
CHG business in US is witnessing moderate pricing declines. Company is launching new products, improving backward integration and selling greater volumes to counter the same
Current Debt/EBITDA at around 3.5. Aim to bring it down to below 3 in short term
Current asset turns achieved by the company are around 1-1.2. Aim to take it to above 2 in next 2-3 yrs
Company aims to close FY 24 with a high teens kind of topline growth ( that means - Q4 should be bumper )
Disc: holding, biased, inclined to add more, not SEBI registered
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