Piramal Enterprises Ltd reported a 7.7 per cent increase in its consolidated net profit to ₹533.79 crore in the quarter ended June 30, 2021 as against ₹495.56 crore a year ago.

Revenue from operations fell marginally by 1 per cent to ₹2,908.68 crore in the first quarter of the fiscal as against ₹2,937.34 crore in the corresponding period last fiscal.

Income under share of associates, which primarily includes PEL’s share of profits at Shriram Capital and profit under JV with Allergan, surged by 373 per cent on a year-on-year basis to ₹165 crore as on June 30, 2021.

Ajay Piramal, Chairman, PEL said, “Despite the impact of the second wave of Covid-19, we have delivered resilient performance during the quarter. We continue to maintain a strong balance sheet, with net debt-to-equity ratio at 0.8x.”

Net sales from the financial services business declined by 19 per cent to Rs ₹1,547 crore as on June 30, 2021 from ₹1,899 crore a year ago.

However, net sales from the pharma business grew by 31 per cent on a year on year basis to ₹1,362 crore in the April to June 2021 quarter.

In a statement on Friday, PEL said significant process has been made in the acquisition of Dewan Housing Finance Corporation Ltd in the first quarter of the fiscal.

“Implementation of the resolution plan is in progress - to be completed within 90 days of NCLT approval, as per regulatory requirement,” it said.

Retail AUM

The retail AUM of PEL’s financial services business is expected to grow by about five times through the DHFL acquisition and will become one of the top five housing finance companies in the country.

Asset quality remained stable for the financial services business. Gross non performing assets was 4.3 per cent as on June 30, 2021 as against 4.1 per cent as on March 31, 2021. PEL said there were no major fresh slippages during the quarter.

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