Pharma Sees Better Revenue Growth in Q2

Chennai: Pharma market reported better revenue growth in Q2 FY25 against the year-ago quarter, mainly driven by price rise and new launches. Pharma companies that reported double-digit revenue growth include Sun Pharmaceuticals, Cipla, Torrent, Dr Reddy’s and Piramal.

The sector reported revenue growth of 8.1 per cent in 2QFY25 against 6.5 per cent in the same quarter last year. The growth was mainly driven by prices which rose 5.4 per cent on a year-on-year basis and new launches that were up 2.5 per cent. However, the volume growth remained weak at 0.2 per cent, finds ICRA. Further, the sector had delivered healthy revenue growth at 10.5 per cent in 1QFY25 and 10.6 per cent in 4QFY24.

In September 2024, sales of the acute segment grew at 3.3 per cent while the chronic and sub-chronic therapy segment rose 7.3 per cent.

Sun Pharmaceuticals reported a year-on-year jump of nearly 10.5 per cent in consolidated revenue from operations to Rs 13,264.22 crore against Rs 12,003.11 crore in Q2FY24. Its formulation sales surged 11 per cent to Rs 4,265 crore, representing approximately 32 per cent of the total consolidated sales. It saw 28 per cent year-on-year rise in its consolidated net profit.

Cipla's consolidated revenue from operations too grew 10.5 per cent to Rs 7,051.02 crore, while it reported a 15.2 per cent year-on-year rise in its consolidated net profit. Its branded prescription sector continued to surpass market performance in major chronic therapies.

Revenues of Torrent Pharma rose 8.6 per cent to Rs 2,889 crore while its India revenues increased 13 per cent to Rs 1,632 crore, led by outperformance in focus therapies. Its consolidated profit after tax rose 17 per cent.

Dr. Reddy’s Laboratories’ consolidated revenue was up 16.5 per cent to Rs 8,038.20 crore against Rs 6,902.60 crore as its revenue from North America was up 17 per cent. Revenue from the India business, the company's second-biggest market, climbed 18 per cent to Rs 1,397 crore. Net profit was down 9 per cent to Rs 1,341.90 crore.

Gland Pharma’s topline reported an increase of 2.36 per cent. Piramal Pharma revenue grew 17 per cent to Rs 2,242 crore and was primarily driven by robust growth in the Contract Development and Manufacturing Organization (CDMO) segment. The company’s profit after tax (PAT) grew to Rs 23 crore for Q2FY25 compared to Rs 5 crore in the year ago quarter.