Piramal Pharma –
Q1 results and Concall highlights –
Revenues – 1971 vs 1787 cr, up 10 pc
EBITDA – 224 vs 171 cr , up 31 pc
Share of profit of associates – 22 vs 14 cr, up 56 pc
PAT – (-) 89 vs (-) 99 cr ( due heavy depreciation and finance costs )
Segment wise revenues –
CDMO – 1057 cr, up 18 pc ( seeing signs of revival in biotech funding. Also seeing steady inflow of orders for commercial manufacturing of on-patent molecules – a key positive ). Also seeing uptick in generic API business
CHG ( complex hospital generics ) – 631 cr, up 2 pc ( anesthesia products reported healthy volume growth in US and EMs – offset by price erosion in US ) Aim to keep expanding portfolio offerings and signing new in-licensing deals. Robust demand seen for Sevofluranne and Isoflurane
ICH ( India Consumer Health ) – 264 cr, up 10 pc ( launched 7 new products, power brands grew @ a strong 19 pc YoY ). New product launches include –
Littles – Baby Diapers
Littles – Baby Detergent
I-Active – Period panties
I-Feel – Intimate women wash
Bohem – men’s hair removal spray
Tri-Active – mosquito nets
Company’s power brands portfolio includes – Littles, I-Range, Tetmosol ( anti-fungal soaps and dusting powder ), Lactocalamine and Polycyrol ( antacids )
In general, 35 pc of company’s EBITDA comes from H1 and 65 pc comes from H2
**50 pc of company’s CDMO work is now innovation related ( ie related to on patent molecule manufacturing + Clinical trials of new molecules ) vs 35 pc in FY 20. Split between Development : On patent Commercial manufacturing is aprox 70:30. That means, on an annual basis – company is generating an aprox revenue of 700 cr from on Patent manufacturing on an annual basis **
19 pc of ICH segment sales come from E-Commerce. The E-comm channel grew by 37 pc YoY
Continue to maintain early teens guidance of growth in Topline and EBITDA and meaningful growth in PAT
Most of company’s sales promotion, advertising efforts in the ICH business are directed towards power brands. Other brands are likely to be in sustain mode
The Bio Secure Act passed in US should act as a tailwind for the company. However, the uptick in business should take some time
Q1 is always the weakest for the company. Business usually picks up from Q2. Expecting the same in FY 25 as well
If the interest rates start to trend downwards, the same will get reflected as savings on interest costs for the company
Company has a product pipeline of 17 products in the CHG business in US. Out of these, 05 are already approved
No of molecules in Phase – 1, 2, 3 development stages @ 68, 38, 33 – as on 31 Mar 24. This looks like a very healthy pipeline. Even if 10-15 molecules from the 33 molecules in phase 3 go into commercial production, company’s revenues from on patent manufacturing can potentially double in 2-3 yrs ( or go up by even higher percentage ) from 700 to > 1400 cr / yr
Disc: holding from lower levels, biased, not SEBI registered, not a buy/sell recommendation
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