Money & Banking

Piramal Enterprises posts 10% increase in Q3 net profit

Our Bureau Mumbai | Updated on February 11, 2021

Ajay Piramal, Chairman, Piramal Group,   -  Businessline

DHFL acquisition in line with plans to diversify loan book, says company

Piramal Enterprises Ltd reported a 10 per cent increase in consolidated net profit to ₹799 crore in the third quarter of the current fiscal year against a net profit of ₹724 crore in the same period last fiscal.

PEL, which recently emerged as the successful bidder for Dewan Housing Finance Corporation Ltd, said the acquisition is in line with its strategy to diversify its loan book and increase granularity.

“We are changing our financial services business model from one that is wholesale led to a well-diversified one; this also being one of the key objectives behind our bidding for DHFL,” said Ajay Piramal, Chairman, PEL.

The total consideration for DHFL was ₹34,250 crore, which includes an upfront cash component of ₹14,700 crore and a deferred component of ₹19,550 crore, PEL said in a statement on Thursday.

 

Drop in total income

Meanwhile, for the quarter ended December 31, PEL reported a four per cent drop in its total income at ₹3,265 crore against ₹3,411 crore a year ago. Net sales declined three per cent to ₹3,169 crore

In the financial services business, net sales fell nine per cent to ₹1,795 crore for the October-December 2020 quarter versus ₹1,963 crore a year ago.

Capital adequacy ratio was at 37 per cent and it maintained provisions at 6.3 per cent of the loan book or ₹2,935 crore to manage any future contingencies.

“Commenced disbursements under the multi-product retail lending platform, launched in November 2020. Expanded the retail lending product portfolio to six products as of December 2020,” PEL said.

In the pharma business, PEL reported a five per cent increase in net sales in the third quarter at ₹1,374 crore (₹1,307 crore).

“Closed fund raising deal with The Carlyle Group- received ₹3,523.40 crore as proceeds from pharma fund raise in October 2020,” it said.

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Published on February 11, 2021
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