Piramal Pharma Ltd shares surged 13% in Tuesday’s trade following the company’s positive guidance for the second half of the current financial year 2023-24 (H2FY24).
The pharmaceutical company provided guidance for the second half year at its conference call following the release of the financial results of the quarter ended in September 2023.
Piramal Pharma in a conference call with investors predicted a high teen revenue growth on a year-on-year (YoY) basis for the six-month period from October 2023 to March 2024, along with meaningfully higher earnings before interest, taxes, depreciation, and amortisation (EBITDA) compared to the first half of FY24.
Piramal Pharma's Contract Development and Manufacturing (CDMO) division’s business has returned to mid-teen growth in the September quarter, increasing by 13.6% to ₹1,068 crore compared to ₹940 crore in the same period last year.
The order inflows of the company have improved over the last two quarters in the CDMO business. As a result, Piramal Pharma expects good visibility in the said division in the financial year 2024.
Further, the company repaid a debt amount of almost ₹958 crore in the July to September 2023 quarter from the proceeds of rights issue and is looking at further debt repayment from internal accruals.
In Q2FY24, Piramal Pharma reported a net profit of ₹5 crore compared to a net loss of ₹37.34 crore in the corresponding quarter in the previous financial year.
Its operating profit or EBITDA also improved significantly by 54% on a YoY basis to ₹265.6 crore, while the EBITDA margin jumped almost 400 basis points (bps) to 13.9% in the period from 10% in the year-ago quarter.
Shares of Piramal Pharma were trading 6.7% higher at ₹101.95 per piece on BSE at 1:25 PM.
(Edited by : Asmita Pant)
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