Piramal Pharma Limited Announces Consolidated Results for Q4 and FY2023

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MUMBAI, India, May 24, 2023 /PRNewswire/ -- Piramal Pharma Limited (NSE: PPLPHARMA) (BSE: 543635), today announced its consolidated results for the fourth quarter (Q4) and full year FY23 ended 31^st March 2023.

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 multiple regulatory inspections and 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 4 US FDA inspections in FY23
  I.  Zero observations at Riverview and Digwal and
  II.  EIR* received from US FDA for Sellersville and Lexington facilities
• Development pipeline - Aim to continue discovering and developing new molecules for our customers and have a development pipeline of molecules across various stages of development

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 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 general trade outlets and organised retail stores. Also presence across all leading e-commerce platforms

* EIR – Establishment Inspection Report

Note: FY23 financials are strictly not comparable to FY22 respectively

The Hon'ble NCLT, on 12^th 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 1^st Apr'22.

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

Financial statements of CCPL and HPPL, wholly owned subsidiaries of PPL have been combined as if the amalgamation had occurred on 1^st 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 1^st 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 31^st 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 1^st 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.

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 25^th May 2023 at 5:00 PM (IST) to discuss its Q4 and FY2023 Results.

The dial-in details for the call are as under:

About Piramal Pharma Ltd:
Piramal Pharma Limited (PPL, NSE: PPLPHARMA) (BSE: 543635), offers a portfolio of differentiated products and services through its 17 global facilities which include end-to-end development and manufacturing capabilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated Contract Development and Manufacturing Organization; Piramal Critical Care (PCC), a Complex Hospital Generics business; and the India Consumer Healthcare business, selling over-the-counter products. In addition, one of PPL's associate companies, Allergan India Private Limited, is a JV with AbbVie Inc. and has emerged as one of the market leaders in the ophthalmology therapy area. Further, PPL has a minority investment in Yapan Bio. In October 2020, PPL received 20% strategic growth investment from the Carlyle Group.

For more information visit: https://www.piramal.com/pharma/, Facebook, Twitter, LinkedIn 

Disclaimer
This press release is for information only. Nothing in this press release constitutes an offer of Rights Entitlement (including their credit) or Rights Equity Shares for sale or a solicitation of an offer to buy Rights Entitlement (including their credit) or Rights Equity Shares, in the United States of America or in any other jurisdiction where such offer, solicitation or sale would be unlawful. Any securities mentioned herein have not been, and will not be, registered under The United States Securities Act of 1933, as amended (the "U.S Securities Act") and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Rights Entitlements (including their credit) and the Rights Equity Shares are only being offered and sold outside the United States in "offshore transactions "as defined in and in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur.

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