Piramal Pharma Board Recommends Final Dividend of Rs 0.11 Per Share for FY 2023-24

Piramal Pharma Board has recommended a final dividend of Rs 0.11 per share with a face value of Rs 10 with a record date of July 12th, 2024.  

by Damodharan N

Updated Jul 03, 2024

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Piramal Pharma Board Recommends Final Dividend of Rs 0.11 Per Share for FY 2023-24

The Board of Directors has proposed a final dividend of Rs 0.11 per equity share, each with a face value of Rs 10, for the financial year ending March 31, 2024. Shareholders can mark their calendars for Friday, July 12, 2024, which has been set as the 'Record Date' for this dividend.

Pending approval at the upcoming Annual General Meeting (AGM), shareholders can expect the dividend to be paid or credited shortly after Friday, July 26, 2024. This recommendation highlights the company's commitment to delivering value to its shareholders and maintaining a steady return on investment.

The Board of Directors of Piramal Pharma has scheduled the Annual General Meeting (AGM) for Friday, July 26, 2024, at 3:00 p.m. IST via video conferencing. The meeting will cover several key points, including:

  1. Adoption of Audited Financial Statements for the year ended March 31, 2024.
  2. Declaration of a final dividend of Rs 0.11 per equity share.
  3. Reappointment of Mr. Vivek Valsaraj as Director.
  4. Reappointment of Mr. Vivek Valsaraj as Executive Director for three years starting February 9, 2025, with specified remuneration terms.
  5. Approval of commission payment to Non-Executive Directors up to Rs 5 Crores annually for three years starting April 1, 2025.
  6. Authorization to issue Non-Convertible Debentures on a private placement basis within the overall borrowing limit.
  7. Ratification of remuneration for Cost Auditors M/s. G. R. Kulkarni at Rs 12 Lakhs for FY ending March 31, 2025.

Shareholders' approval will be sought for these resolutions to ensure continued strategic governance and financial prudence.

Piramal Pharma Annual Report

In the fiscal year 2023-24, Piramal Pharma Limited (PPL) demonstrated strong performance with significant progress across various business verticals. The company's consolidated and standalone financial metrics highlighted robust growth, driven by strategic initiatives and innovative projects.
Financial Metrics Annual Report 2023-24 with Percentage Changes.

Particulars

Consolidated FY 2024

Consolidated FY 2023

Change %

Standalone FY 2024

Standalone FY 2023

Change %

Net Sales (₹ Crores)

8,171.16

7,081.55

15.38%

4,390.11

3,443.22

27.49%

Non-operating Other Income (₹ Crores)

175.39

225.11

-22.06%

202.06

341.07

-40.75%

Total Income (₹ Crores)

8,346.55

7,306.66

14.22%

4,592.17

3,784.29

21.35%

Other Expenses (₹ Crores)

6,974.90

6,453.31

8.07%

3,772.19

3,345.69

12.75%

OPBIDTA (₹ Crores)

1,371.65

853.35

60.72%

819.98

438.60

86.99%

Interest Expenses (₹ Crores)

448.49

344.18

30.29%

107.10

115.87

-7.56%

Depreciation (₹ Crores)

740.57

676.69

9.43%

205.26

192.08

6.88%

Profit Before Tax & Exceptional Items (₹ Crores)

182.59

(167.52)

N/A

507.62

130.65

288.38%

Exceptional Items (Expenses/Income) (₹ Crores)

(62.79)

(6.96)

N/A

0

(6.96)

N/A

Income Tax (₹ Crores)

161.47

66.31

143.52%

116.40

54.19

114.83%

Net Profit/(Loss) After Tax (₹ Crores)

(41.67)

(240.79)

N/A

391.22

69.50

462.81%

Share of Net Profit of Associates (₹ Crores)

59.49

54.33

9.50%

N/A

N/A

N/A

Net Profit Margin %

0.22%

(2.63%)

N/A

8.91%

2.02%

340.10%

Basic EPS (₹/share)

0.14

(1.54)

N/A

3.05

0.57

435.09%

Diluted EPS (₹/share)

0.14

(1.54)

N/A

3.05

0.57

435.09%

Key Changes:

  • Net Sales increased significantly for both consolidated and standalone figures, with standalone net sales growing by 27.49%.
  • Non-operating Other Income saw a considerable decline.
  • Total Income increased by 14.22% for consolidated and 21.35% for standalone.
  • OPBIDTA showed a notable increase of 60.72% for consolidated and 86.99% for standalone.
  • Interest Expenses rose by 30.29% for consolidated but decreased by 7.56% for standalone.
  • Depreciation saw a moderate increase.
  • Profit Before Tax & Exceptional Items improved significantly, especially for standalone.
  • Net Profit After Tax turned positive for consolidated and saw a massive increase for standalone.

Business Verticals

PPL's diverse business verticals, including Complex Hospital Generics, India Consumer Healthcare, and Inhalation Anesthesia, contributed significantly to the revenue. The company's vertically integrated manufacturing capabilities provided a competitive edge, ensuring a reliable supply chain and cost advantages.

India Consumer Healthcare

The Indian consumer sector is one of the fastest-growing sectors in the country, driven by several key demographic factors:

  • Aspiring Middle Class: Rising disposable income among the middle class.
  • Young Professionals: A significant portion of the population are young professionals.
  • Economic Growth in Rural Areas: Increasing economic activity and income in rural areas.
  • Digital and Social Media Awareness: Greater awareness due to the influence of digital and social media.
  • Health and Well-being Focus: Enhanced focus on health and well-being among consumers.

The usage of Over-the-Counter (OTC) products has seen steady growth in recent years. According to the USFDA, OTC medicines are drugs that can be legally sold without a prescription. These products can be purchased from pharmacies, retail stores, supermarkets, and online pharmacies without a prescription from a registered medical practitioner. The OTC market includes consumer care segments such as skincare, hygiene, self-care, and preventive care.

Market Growth

As per the Crisil Report, India’s OTC drug market was valued at ₹31,000 Crores in FY2022, growing at a 7.9% CAGR between FY2017-22. It is projected to grow at 11.5-12% CAGR between FY2022-27, potentially reaching around ₹54,000 Crores by FY2027, driven by:

  • Easy Availability: OTC products are readily accessible.
  • Increased Affordability: Growing affordability of these products.
  • Awareness: Rising awareness among consumers.

Common ailments with high OTC product usage include:

  • Acidity and Indigestion
  • Constipation and Diarrhoea/Dehydration
  • Cold and Cough
  • Analgesics
  • Rashes/Ringworm and Acne
  • Feminine/Intimate Hygiene
  • Cuts/Burns/Wounds
  • Skin Care
  • Vitamins/Minerals/Supplements
  • Eye Strain and Sleeplessness
  • Smoking Cessation

Our India Consumer Healthcare (ICH) business is an emerging self-care company offering a wide range of well-known products in the consumer healthcare segment. We have a diverse portfolio of over 30 brands across various categories, including:

  • Analgesics
  • Skincare
  • Vitamins, Minerals, and Supplements (VMS)
  • Kids’ Wellness
  • Digestives
  • Women’s Health
  • Hygiene and Protection

Prominent brands in the portfolio include:

  • Little’s: Wipes, Toys, Diapers, Feeding Range
  • Lacto Calamine: Oil Control Lotion, Facewash, Sunscreen
  • Tetmosol: Medicated Soap, Cream, Powder
  • i-Range: Contraceptive Pill, Ovulation Kit, Pregnancy Detection Kit
  • Polycrol: Antacid

We also have a manufacturing and distribution agreement with Bayer Pharmaceuticals Private Limited (Bayer®) for brands such as Saridon, Supradyn, Becozym, and Benadon.

Business Model

The ICH business operates on an asset-light model, with products such as baby diapers, baby wipes, medicated soap, lacto lotions, and antacid liquids manufactured by third parties. We focus on brand promotions and marketing through social media platforms and celebrity endorsements to build strong consumer brands that resonate well with our target audience.

Complex Hospital Generics

The "Complex Hospital Generics Business" of Piramal Critical Care focuses on specialized generic drugs used primarily in hospital settings. These drugs are considered complex because they involve advanced ingredients, formulations, or delivery methods, making their development challenging and costly. 

In the complex hospital generics sector. Key products include Sevoflurane, Isoflurane, Desflurane for inhalation anesthesia, and Baclofen for intrathecal therapy. They lead the market in the U.S. with significant market shares. Recent launches and expansions reflect their strategic focus, with investments in manufacturing facilities like Bethlehem (USA) and Digwal (India) to meet global demand.

The market for these complex generics is growing globally, driven by increasing demand for advanced medical treatments and regulatory complexities that limit competition. Piramal holds leading positions in key markets: they are ranked #1 in the U.S. for Sevoflurane, a popular inhalation anesthesia with over 40% market share by value, and for Baclofen pre-filled syringes and vials with more than 70% market share. 

CDMO

Piramal Critical Care's Contract Development and Manufacturing Organization (CDMO) business showed a strong 19% year-on-year revenue growth. A significant portion, 50% of their revenues, comes from innovation-related projects, a notable increase from 35% in FY2019, growing at a compound annual growth rate (CAGR) of 20%.

Additionally, 44% of their revenues are derived from differentiated offerings, up from 27% in FY2021, with a CAGR of 22%. These figures underscore their commitment to expanding in high-value segments within the CDMO sector.

Read the notice and annual report Here

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Piramal Pharma Limited

Piramal Pharma Limited (PPL) operates a diverse portfolio across pharmaceutical sectors globally. It includes Piramal Pharma Solutions (PPS), which provides comprehensive contract development and manufacturing services throughout the drug lifecycle from North America, Europe, to Asia.

PPL also encompasses Piramal Critical Care (PCC), specializing in complex hospital generics such as inhalation anesthetics and intrathecal therapies. Additionally, it manages India Consumer Healthcare, offering over-the-counter products. PPL's joint venture with Allergan strengthens its presence in the Indian ophthalmology market.

With a robust global network spanning 15 facilities and distribution in over 100 countries, PPL focuses on innovation, ethical practices, and inclusive growth, supported by initiatives like Piramal Foundation in healthcare and social sectors.

Piramal Pharma Board Recommends Final Dividend of Rs 0.11 Per Share for FY 2023-24 - FAQs

1. What was PPL's consolidated net sales in FY 2024?  

Consolidated net sales increased by 15.38% to ₹8,171.16 crores in FY 2024.

2. How much did PPL's standalone net sales grow in FY 2024?  

Standalone net sales grew significantly by 27.49% to ₹4,390.11 crores in FY 2024.

3. What was the change in PPL's consolidated OPBIDTA in FY 2024?  

Consolidated OPBIDTA showed a notable increase of 60.72% to ₹1,371.65 crores in FY 2024.

4. How much did PPL's standalone OPBIDTA increase in FY 2024?  

Standalone OPBIDTA increased by 86.99% to ₹819.98 crores in FY 2024.

5. What was the change in PPL's consolidated net profit margin in FY 2024?  

Consolidated net profit margin improved from -2.63% in FY 2023 to 0.22% in FY 2024.

6. How much did PPL's standalone net profit margin increase in FY 2024?  

Standalone net profit margin increased significantly from 2.02% in FY 2023 to 8.91% in FY 2024.

7. What was the change in PPL's consolidated basic EPS in FY 2024?  

Consolidated basic EPS improved from -₹1.54 in FY 2023 to ₹0.14 in FY 2024.

8. How much did PPL's standalone basic EPS increase in FY 2024?  

Standalone basic EPS increased by 435.09% from ₹0.57 in FY 2023 to ₹3.05 in FY 2024.

9. What was the change in PPL's consolidated diluted EPS in FY 2024?  

Consolidated diluted EPS improved from -₹1.54 in FY 2023 to ₹0.14 in FY 2024.

10. How much did PPL's standalone diluted EPS increase in FY 2024?  

Standalone diluted EPS increased by 435.09% from ₹0.57 in FY 2023 to ₹3.05 in FY 2024.

11. What was the percentage increase in standalone net sales?        

The percentage Standalone net sales grew by 27.49%.

12. How much did consolidated net sales increase by  

Consolidated net sales increased significantly,

13. What contributed significantly to revenue in PPL's business verticals?  

Complex Hospital Generics, India Consumer Healthcare, and Inhalation Anesthesia were key contributors.

14. What was the growth rate of the OTC drug market in India from FY2017-22?    

The market grew at a 7.9% CAGR, reaching ₹31,000 Crores by FY2022.

15. What is the projected CAGR for the Indian OTC drug market from FY2022-27?  

It is projected to grow at 11.5-12% CAGR, potentially reaching around ₹54,000 Crores by FY2027.

16. What is the percentage increase in OPBIDTA for standalone operations?  

OPBIDTA increased by 86.99% for standalone operations.

17. How did non-operating other income perform?  

It saw a considerable decline, though the exact percentage decrease isn't specified.

18. What was the change in interest expenses for consolidated operations?      

Interest expenses rose by 30.29% for consolidated operations.

19. What was the change in interest expenses for standalone operations?  

Interest expenses decreased by 7.56% for standalone operations.

20. Did standalone net profit after tax turn positive?  

Yes, standalone net profit after tax turned positive and saw a significant increase.

21. Which business model does the India Consumer Healthcare (ICH) business operate on?  

It operates on an asset-light model, focusing on brand promotions and marketing.

22. Which brands are part of the India Consumer Healthcare (ICH) portfolio?  

Brands include Little’s, Lacto Calamine, Tetmosol, i-Range, and Polycrol, among others.

23. What percentage of Piramal Critical Care's revenues come from innovation-related projects?  

50% of revenues come from innovation-related projects, up from 35% in FY2019.

24. What is Piramal Critical Care's market share for Sevoflurane in the U.S.?      

They hold over 40% market share by value for Sevoflurane.

25. How much did Piramal Critical Care's CDMO business revenue grow year-on-year?  

The CDMO business showed a 19% year-on-year revenue growth.

26. What is the revenue contribution from differentiated offerings in Piramal Critical Care's CDMO sector?  

44% of revenues are derived from differentiated offerings, up from 27% in FY2021.

27. Which markets does Piramal hold leading positions in for Complex Hospital Generics?

They are ranked #1 in the U.S. for Sevoflurane and Baclofen products.

28. What was the percentage increase in total income for standalone operations?  

Standalone total income increased by 21.35%.

29. How did depreciation expenses change in the reported period?  

Depreciation saw a moderate increase, though specific percentage details are not provided.

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