Hit by interest outgo, lower forex gains

Piramal Enterprises Limited — formerly, Piramal Healthcare — has posted a net loss of Rs 92 crore for the three months ended September 30, 2012, compared with the Rs 52-crore profit in the corresponding period last year.

The loss stemmed from a combination of interest payment of Rs 122 crore, research-related spends of Rs 54 crore and lower forex gain of Rs 28 crore, a company representative said.

PEL’s total operating income for the quarter grew from Rs 534 crore in the second quarter last year, to Rs 863 crore, up 61 per cent, in the quarter under review. The quarterly performance also includes financial results of Decision Resources Group Inc (DRG), acquired in June 2012, and the research arm of Piramal Enterprises de-merged from Piramal Life Sciences Ltd and incorporated into itself in FY2012.

Interest cost was higher at Rs 122 crore in the quarter under review, over Rs 19 crore in the same quarter last year, because of the DRG acquisition, the official said.

In June 2012, PEL had also raised debt to fund acquisition of DRG for $635 million.

CONTRACT RESEARCH

The company’s pharma solutions business or the segment where it does contract research and manufacturing for other (largely overseas) clients has grown over 19 per cent, with sales of Rs 364 crore, compared with Rs 305 crore in Q2-12. Piramal’s critical care sales grew 69 per cent to Rs 155 crore over the same quarter last year.

The over-the-counter and ophthalmology business recorded sales of Rs 67 crore for the quarter, up 18 per cent over Q2-12.

Financial Services

The company’s income from its financial services business, which includes PHL Finance Ltd and INDIAREIT Fund, was Rs 54 crore for the quarter. The loan book as on September 30, was Rs 812 crore.

Merger

The company’s board that met on Monday also approved the scheme of amalgamation between PHL Holdings Private Ltd (PHPL) and PEL, to streamline the promoter-family’s holding structure in the company. PHPL holds about 49 per cent in PEL and, following the merger, the shares of PHPL in PEL will be cancelled and an equivalent number of shares will be issued to the equity shareholders of PHPL.

There will be no impact on the financials and the shareholding pattern; the promoters and public will hold the same number of equity shares in PEL, the company said. The scheme still requires regulatory approvals.

PEL shares closed marginally down on the BSE, at Rs 489, on Monday.

jyothi.datta@thehindu.co.in

(This article was published on November 5, 2012)
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