May 29, 2024

Piramal Pharma Limited Announces Consolidated Results for Q4 and FY2023

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Mumbai, India | May 27, 2023: Piramal Pharma Limited (NSE: PPLPHARMA | BSE: 543635), today announced its consolidated results for the fourth quarter (Q4) and full year FY23 ended 31st March 2023.

Consolidated Financial Highlights

(In INR Crores)

Particulars Quarterly Full Year
Q4

FY23

Q4

FY22

YoY Growth Q3

FY23

QoQ Growth FY23 FY22 YoY Growth
Revenue from Operation 2,164 2,131 2% 1,716 26% 7,082 6,559 8%
   CDMO 1,285 1,322 -3% 1,021 26% 4,016 3,752 7%
   Complex Hospital Generic 702 550 28% 514 37% 2,286 2,002 14%
   India Consumer Healthcare 206 269 -23% 214 -4% 859 806 6%
EBITDA 376 476 -21% 170 121% 853 1,225 -30%
EBITDA Margin (%) 17% 22%   10%   12% 19%  
PAT 50 204 -75% -90 N/A -186 376 -150%

Note: The previous year (FY22) financials do not include non-common control transactions and hence YoY financials are not strictly comparable. Please refer to pages 3 and 4 for detailed explanation and like-to-like financials.

EBITDA stands for earnings before interest, taxes, depreciation, and amortisation which has been arrived at by adding finance expense, depreciation expense to the profit before tax for the period

Key Highlights for Q4 FY23 and FY23

  • Revenue from Operation grew by 2% YoY in Q4FY23 and 8% in FY23
  • EBITDA margin for Q4 FY23 and FY23 was 17% and 12% respectively impacted by lower sales and higher operating expenses
  • Successfully cleared 36 regulatory inspections and 197 customer audits in FY23
  • New capabilities / capacity expansion gone live at Ahmedabad PDS, peptide facility (Turbhe, India) and Riverview (US) are witnessing good customer demand
  • Rights Issue – DLOF filed with the SEBI, currently under review

Nandini Piramal, Chairperson, Piramal Pharma Limited said, “Over the recent years, Q4 has always been the strongest quarter for the Company in terms of revenue contribution and EBITDA margin. This year as well, we have seen a healthy pickup in our Q4 revenues and EBITDA margin compared to previous three quarters of the financial year.

Our CDMO business, which had a challenging year, witnessed significant pickup in order bookings in Q4. Our Inhalation Anesthesia portfolio continues to see a healthy demand and hence we are expanding our capacities. Our India Consumer Healthcare business is delivering good growth driven by our power brands.

We continue to maintain our quality track record with successful US FDA inspections – zero observations at Riverview and Digwal facilities, and EIR received for Lexington and Sellersville facilities. We believe in the potential of our businesses and our main focus over the next few months will be on capturing demand and executing them well, driving productivity through operational excellence and executing critical maintenance and growth capex.”

Key Business Highlights for Q4 and FY23
 

Contract Development and Manufacturing Organization (CDMO):

–          Witnessed a significant pickup in order bookings in Q4 compared to the previous three quarters. The orders received during Q4 was a healthy mix of on-patent and generic product development and manufacturing.

–          Continue to see good demand for our CDMO services in the niche areas of high potent API, peptide and anti-body drug conjugate. New capabilities / capacity expansion gone live at Riverview (US), peptide facility (Turbhe, India) and Ahmedabad PDS, witnessing healthy customer demand

–          Expect to go live with expansion at our Grangemouth facility in H2FY24 which should help strengthen our position in the anti-body drug conjugate segment

–          Maintained our quality track record – successfully cleared 36 regulatory inspections (including 4 US FDA inspections) and 197 customer audits in FY23

I.        Zero observations at Riverview and Digwal and

II.        EIR* received from US FDA for Sellersville and Lexington facilities

–          Development pipeline – Have 179 molecules through pre-clinical to phase III stage with 38 molecules in phase III

 

Complex Hospital Generics (CHG):

–          Inhalation Anesthesia portfolio continues to see a strong demand in the US and non-US markets. We are accordingly expanding our capacities at Digwal and Dahej

–          As per IQVIA MIDAS MAT®  Sep. 2022 data, we are the leading player in Sevoflurane in the US with value market share of 39%

–          Intrathecal portfolio in the US continued to command leading market share.

–          Injectable Pain Management – Growth in FY23 impacted by supply constraints at our CMO. We are currently seeing improved traction in production

–          Other Injectable – Launched 3 new products (10 SKUs) during FY23 in US and Europe

–          Building pipeline of 25+ new products / SKUs which are various stages of development

 

India Consumer Healthcare (ICH):

–          26 new products and 37 new SKUs launched in FY23. New products launched since April 2020 contributed to 18% of total ICH sales in FY23

–          Continue to invest in media and trade spends to drive growth in power brands

–          Power Brands – Littles, Lacto Calamine, Polycrol, Tetmosol and I-range, grew by 37% YoY in FY23 and contribute to 42% of ICH sales

–          E-commerce grew by more than 40% YoY in FY23 and contributed 16% to ICH revenues

–          Wide distribution reach across ~200,000 outlets and ~12,000 organised retail stores. Also presence across all leading e-commerce platforms

 

* EIR – Establishment Inspection Report


Consolidated Profit and Loss Statement

(In INR Crores)

Reported Financials

Particulars Quarter Full Year
Q4 FY23 Q4 FY22 YoY  Change Q3 FY23 QoQ  Change FY23 FY22 YoY  Change
Revenue from Operations 2,164 2,131 2% 1,716 26% 7,082 6,559 8%
Other Income 25 78 -69% 83 -70% 225 276 -18%
Total Income 2,188 2,210 -1% 1,799 22% 7,307 6,835 7%
Material Cost 840 840 0% 625 34% 2,703 2,451 10%
Employee Expenses 474 403 18% 492 -4% 1,896 1,589 19%
Other Expenses 499 490 2% 511 -2% 1,854 1,569 18%
EBITDA 376 476 -21% 170 121% 853 1,225 -30%
Finance Cost 104 57 83% 95 10% 344 198 74%
Depreciation 184 165 12% 164 12% 677 586 15%
Share of net profit of associates 8 19 -59% 16 -50% 54 59 -8%
Profit Before Tax 95 273 -65% -74 N/A -113 500 -123%
Tax 45 69 -35% 17 171% 66 109 -39%
Net Profit after Tax 50 204 -75% -90 N/A -179 391 -146%
Exceptional item 0 0 N/A 0 N/A -7 -15 -54%
Net Profit after Tax after exceptional item 50 204 -75% -90 N/A -186 376 -150%

 

Note: FY23 financials are strictly not comparable to FY22 respectively

The Hon’ble NCLT, on 12th Aug’22, approved the composite scheme of arrangement for transfer by way of demerger of the Pharma business from Piramal Enterprises Ltd (PEL) into Piramal Pharma Ltd. and amalgamation of PPL’s wholly owned subsidiaries Hemmo Pharmaceuticals Pvt Ltd (HPPL) and Convergence Chemical Pvt Ltd (CCPL) into itself with an appointed date of 1st Apr’22.

Accordingly, the financial statements of PPL have been prepared giving effect to the scheme from 1st Apr’2022.

Financial statements of CCPL and HPPL, wholly owned subsidiaries of PPL have been combined as if the amalgamation had occurred on 1st April, 2021 or from the date on which the Company acquired control over these subsidiaries, whichever is later.

Prior to the demerger, PPL had entered into an arrangement with PEL for continued onward sale by PEL, of products under Government tenders that were obtained in the name of PEL, till obligations under these tenders were fully met. The agreement also included sale of PPL’s Consumer products (OTC) through PEL’s CFA (Carrying and Forwarding Agent) network till all requisite licenses, registrations, permits were fully transferred in the name of PPL.

In accordance with the scheme the demerger of pharma undertaking has been considered as non-common control transaction and accounted as business combination as per Ind-AS 103 in the financial statements of PPL w.e.f 1st Apr’22. Accordingly, the financial results for FY23 are not comparable with corresponding previous period.  Like-to-Like financials are as shown in the table below.

Also, all the closing inventory as on 31st Mar’22 at PEL, in respect of such transactions included the margin element charged by PPL to PEL on arm’s length basis. Since the demerger is effective 1st Apr’22, the opening inventory transferred to PPL at fair value (provisional) as per IND-AS included the margin element and the same has been charged to the P&L in Q1FY23 of PPL financial statements, on sale of such products in PPL.

The one-time, non-recurring impact on EBITDA of this inventory margin in Q1FY23 financial statements is INR 68Cr.

 

Like-to-Like Financials

(In INR Crores)

Particulars Quarterly Full Year
Q4 FY23 Q4 FY22 YoY  Change Q3 FY23 QoQ  Change FY23 FY22 YoY  Change
Revenue from Operations 2,164 2,139 1% 1,716 26% 7,082 6,700 6%
      CDMO 1,285 1,394 -8% 1,021 26% 4,016 3,960 1%
      CHG 702 548 28% 514 37% 2,286 2,002 14%
       ICH 206 196 5% 214 -4% 859 741 16%
EBITDA 376 478 -21% 170 121% 922 1,194 -23%
EBITDA margin 17% 22%   10%   13% 18%  

 


Consolidated Balance Sheet

  (In INR Crores)

   Key Balance Sheet Items As at
31-Mar-23 31-Mar-22
Total Equity 6,773 6,697
Net Debt 4,781 3,656
Deferred Consideration 11 90
Total 11,565 10,443
     
Net Fixed Assets 8,887 8,051
    Tangible Assets 4,441 3,716
    Intangible Assets including goodwill 4,446 4,336
Net Working Capital 2,320 2,058
Other Assets# 358 335
Total Assets 11,565 10,443

# Other Assets include Investments and Deferred Tax Assets (Net)

 Q4 and FY2023 Earnings Conference Call

Piramal Pharma Limited will be hosting a conference call for investors / analysts on 25th May 2023 at 5:00 PM (IST) to discuss its Q4 and FY2023 Results.