Piramal Enterprises Ltd reported a 32.1 per cent drop in its consolidated net profit to ₹426.49 crore for the second quarter of the fiscal against ₹628.31 crore in the same period last fiscal.

For the quarter ended September 30, revenue from operations declined 5.9 per cent to ₹3,105.52 crore from ₹3,301.84 crore a year ago.

Total income fell 3 per cent on a year-on-year basis to ₹3,234 crore in the second quarter of this fiscal.

PEL completed the acquisition of Dewan Housing Finance Corporation Ltd (DHFL) and its merger with Piramal Capital and Housing Finance Limited (PCHFL) in September.

The profit and loss performance of PEL for the second quarter and first half of the fiscal, however, does not include the acquisition of DHFL.

“We successfully completed the acquisition and merger of DHFL and the total assets under management has grown 42 per cent quarter on quarter to ₹66,986 crore. The acquisition has enabled us to diversify our loan book and scale up our retail lending portfolio through multi-product offerings that cater to the needs of the underserved customers of our country. Leveraging our data, analytics and technology capabilities, we aim to be a dominant player in the growing Tier- 2 and -3 cities and be the lender of choice for budget-conscious customers,” said Ajay Piramal, Chairman, PEL.

Revenue for the financial services business fell 20.2 per cent to ₹1,484.1 crore for the July to September quarter from ₹1,860.7 crore in the same period last fiscal.

In a statement, PEL said there has been improvement in asset quality metrics post the DHFL acquisition in its financial services business.

Gross NPA ratio declined 140 basis points quarter on quarter to 2.9 per cent. Net NPA also fell 75 basis points sequentially to 1.5 per cent.

The pharma business reported a 12.5 per cent increase in revenue on a year-on-year basis to ₹1621.42 crore for the second quarter of the fiscal.

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