Money & Banking

Piramal Enterprises Q2 profit rises 14% to ₹628 crore

Our Bureau. Mumbai | Updated on October 28, 2020

Piramal Enterprises Ltd (PEL) reported a 14 per cent increase in consolidated net profit at ₹628 crore in the second quarter ended September 30, 2020, against ₹551 crore in the year-ago quarter.

PEL has diversified business interests in financial services and pharmaceuticals.

Revenue from the financial services business was down 5 per cent year-on-year (y-o-y) at ₹1,861 crore (₹1,954 in the year-ago quarter). However, revenue from pharma business was up 9 per cent at ₹1,441 crore (₹1,317 crore).

As of September-end 2020, loan book was down 3 per cent y-o-y at ₹51,522 crore (₹53,055 crore as of September-end 2019).

The company said the wholesale loan book has come down by 11 per cent to ₹45,840 crore as of September-end 2020 against ₹51,436 crore as of March-end 2019.

PEL said its retail lending strategy will entail pivoting from ‘affluent housing’ to ‘mass affluent’ and ‘affordable’ housing, and building a largely secured lending book in FY21, roll-out of other lending products in FY22.

Ajay Piramal, Chairman, PEL said: “Progressing on the stated strategy of diversifying the loan book, we will be launching our multi-product retail lending platform in November 2020.

“The pharma business recorded a healthy improvement in both revenue growth and profitability. It also completed the 20 per cent growth investment by The Carlyle Group...Both businesses are now at an inflection point, where we see a good runway for strong performances in the mid to long-term.”

Published on October 28, 2020

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