Piramal Pharma shares surged as much as 8% on Monday before cooling off the highs after the company reported a net profit in Q2
Piramal Pharma Share Price: Piramal Pharma shares surged as much as 8 per cent on Monday before cooling off the highs after the company reported a net profit in the September quarter compared to a net loss in the same period last year.
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The profitability of the company’s contract development and manufacturing business improved on account of increased revenue and cost-optimisation initiatives.
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 per cent 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 per cent, the company said.
The stock has gained more than 36 per cent in the past six months, outperforming the benchmark Nifty, but has lost 40 per cent 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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The second half of the year has historically been better for Piramal Pharma and the management expects a similar trend to play out this financial year as well, more specifically during the March quarter.
Despite gaining nearly 40 per cent over the last six months, the stock is still down 17 per cent in 2023 so far.
