Shares of Piramal Pharma surged as much as 8% 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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Piramal Pharma reported a net profit of ₹5 crore in the September quarter, compared to a net loss of ₹37.34 crore in the year-ago period.

Operating profit or EBITDA for the company grew by 54% year-on-year to ₹265.6 crore. EBITDA margin also improved by nearly 400 basis points to 13.9% from 10% last year.

Revenue for the quarter stood at ₹1,911.4 crore, a jump of 11% compared to the same period last year.

Piramal Pharma's Contract Development and Manufacturing (CDMO) division saw revenue grow by 13.6% to ₹1,068 crore from ₹940 crore last year.

Revenue from the complex hospitals generics business grew by 5% to ₹589 crore from ₹562 crore last year.

The company's India consumer health business also grew by 13% to ₹256 crore from ₹227 crore last year.

As of the September quarter, Piramal Pharma's net debt fell to ₹3,823 crore compared to ₹4,781 crore at the end of the quarter ended March 2023.

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.

Shares of Piramal Pharma briefly crossed the mark of ₹100 in intraday trading on Monday, gaining as much as 8.4% before cooling off from the day's high. Despite gaining nearly 40% over the last six months, the stock is still down 17% in 2023 so far.

Piramal Pharma shares are currently trading 3.6% higher at Rs 95.85.

(Edited by : Hormaz Fatakia)