Piramal Enterprises Q2 net profit jumps 15%

Our Bureau Mumbai | Updated on October 21, 2019

Diversified conglomerate Piramal Enterprises posted a 15.3 per cent increase in its consolidated net profit to ₹554.08 crore in the second quarter of the fiscal as against ₹480.42 crore a year ago.

The Ajay Piramal led company, with interests in sectors including financial services and pharmaceuticals, registered a 15 per cent increase in its revenue to ₹3,604 crore in the quarter ended September 30, 2019 as against ₹3,144 crore a year ago.

Its financial services business posted net sales of 15 per cent to Rs 1,954 crore in the July to September quarter this year against ₹1,732 crore in the corresponding period last fiscal.

Its loan book stood at ₹53,055 crore as of September 30, 2019. The housing financial loan book grew three times on an annual basis to ₹6,393 crore by September.

“Gross non-performing assets ratio remained stable quarter on quarter at 0.9 per cent in the period. Provisioning was at 194 per cent of gross NPAs,” Piramal Enterprises said in a release on Monday.

It also made repayments of ₹19,400 crore in the past year in the wholesale book.

Ajay Piramal, Chairman, Piramal Enterprises said: “Our diversified business model has enabled us to deliver resilient performance during this quarter, despite continued liquidity tightening in the NBFC sector…Our financial services business received inflows of ₹45,000 crore over the past year and brought down commercial paper borrowings by 92 per cent to about ₹1,480 crore, reflecting the quality of our underwriting, client selection and risk management practices.”

“We remain committed to bring in additional equity in the company in the near future, which will further bolster our plans to tap both organic and inorganic opportunities across our businesses,” Piramal said.

Since the liquidity crisis last year, the company has raised about ₹24,000 crore of long-term funds from October 2018 onwards through bank term-loans, NCDs and ECBs. Its exposure to commercial paper has reduced 92 per cent year on year to ₹1,483 crore from ₹18,017 crores.

Overall Pharma revenue grew 19 per cent year on year to ₹1,316 crore during the second quarter this fiscal. Its global pharma business grew 17 per cent in the quarter under review to ₹1,204 crore.

Published on October 21, 2019

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