Piramal Pharma surges 8% as company swings into profit in Q2

Piramal Pharma surged around 8 percent in the morning trade on October 30 after the company reported an 11 percent on-year growth in consolidated revenue and also managed to report a net profit after a quarter of loss.

The profitability of the company’s contract development and manufacturing business improved on account of increased revenue and cost-optimisation initiatives.

Bottomline turns green

Piramal Pharma’s bottomline finally turned green in the September quarter with a profit after tax of Rs 5 crore against a loss of Rs 37 crore in the year- ago period and Rs 99 crore in the previous quarter. Its EBITDA also saw a robust growth of 44 percent YoY, driven by healthy revenue growth and cost optimisation.

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It successfully completed the rights issue of Rs 1,050 crore, with a subscription of 128 percent, the company said.

At 10.56 am, Piramal Pharma was trading at Rs 96.10 on the National Stock Exchange (NSE), 3.8 percent higher from the previous close.

The stock has gained more than 36 percent in the past six months, outperforming the benchmark Nifty, but has lost 40 percent of its value in the past year.

The pharmaceutical company managed to lower the net debt to Rs 3,823 crore in the September quarter from Rs 4,781 crore at the end of the March quarter for FY23.

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