Piramal Enterprises Ltd

Incase someone is trying to figure out piramal Pharma accounting numbers.

Revenue looks stagnant probably because of DRG business sale at the end of FY21. else, there its a 16% topline growth.

ROE numbers look horrible, partly because of one time acquisition expenses, some new equity raise from Carlyle. Adjusting for this ROE would have been some 10% types.

PPL folks have guided that their EBITDA margins should move back to 22% levels from current 18% in the medium term… factoring that, normalised ROE will be close to 15%.

Also, their depreciation growth in the last 5 years is about 50% and EBITDA margin growth is also close to that- seems like incremental reinvestment is very high to maintain growth in CDMO & Indian OTC brands. PPL folks always talk about EBITDA in their presentations and never about PAT numbers.

Maybe with more phase 3 molecules commercialisation & incremental brownfield expansion utilisations operating and profit margins will shoot up and take the ROE numbers above 20%- I think this should take some time to reflect.

Atleast today as the facts stand, it’s a mid teen topline growth company -growing at the expense of PAT margin and aggresive acquisitions.

Source of PPL financials :

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