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Diversified conglomerate Piramal Enterprises Limited (PEL) logged a consolidated 25 per cent increase in profits to ₹470 crore in the fourth quarter of financial year 2019 as against ₹375 crore in the year ago period.
The Ajay Piramal-led company, with business interests in sectors such as financial services and Pharma, posted a 23% revenue growth at ₹3,860 crore during the quarter as against ₹2,991 crore in the same period last fiscal.
The company’s financial services business grew by 39 per cent during the January-March period at ₹1,933 crore while the Pharma segment grew by 11 per cent at ₹1,477 crore. Its global Pharma grew by 12 per cent during the quarter, however its domestic consumer product business remained stagnant at ₹89 crore during the quarter impacted by various factors including slower economic growth and GST.
NBFC business
Talking about the NBFC business, Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “Our loan book has grown by 34 per cent despite volatility in the NBFC sector. We also diversified our borrowings by raising long-term funds of ₹16,500 crore since September 2018.” He also indicated a possible acquisition of the retail lending portfolio of DHFL.
In financial services business, company’s total loan book grew by 34% year-on-year to ₹56,624 crore, Piramal said adding that the company managed to raise ₹16,500 crore via NCDs and bank loans from September 2018 to March 2019 even at a time when market conditions were not favorable for the NBFC sector.
He added that the company’s commercial paper borrowings reduced by 50% to ₹8,900 crore during the same period.
On pharma sector, Piramal says that the differentiated business model in Pharma has enabled sustained revenue growth in spite of the pricing pressures and regulatory concerns that impacted the industry. “We remain committed to deliver improved performance year-on-year, strengthen our market leadership and consistently create long-term value for our stakeholders,” he added.
Global Pharma’s EBITDA grew at 3 year CAGR of 24 per cent to cross ₹1,000 crore and the company successfully cleared 44 regulatory inspections (including 2 USFDA) and 163 customer audits during the fiscal year.
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