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Piramal Enterprises registered a 20.2 per cent increase in net profit to ₹724.19 crore in the third quarter of the fiscal when compared to ₹602.04 crore in the same period a year ago.
Its total income grew by 9.9 per cent in the October to December 2019 quarter to ₹3,947 crore against ₹3,592.10 crore in the same period a year ago.
Ajay Piramal, Chairman, Piramal Enterprises, said that by the end of the current financial year the company would have exceeded its earlier stated commitment of bringing in ₹8,000 crore to ₹10,000 crore of equity, with inflows of up to ₹14,500 crore through various initiatives, including preferential allotment to CDPQ, sale of DRG and rights issue.
“Our repeated partnerships with marquee global and domestic investors are an affirmation of the robustness of our business model and future growth trajectory,” he said, adding that with the capital infusion the company is well-capitalised to tap both organic and inorganic opportunities arising from industry consolidation and effectively transform our financial services business from a largely wholesale business into a well-diversified financial services business.
“In our pharma business, that is consistently delivering robust performance quarter after quarter, we plan to further raise additional equity capital for its future growth. Infusion of additional capital in pharma is the next step towards unlocking value of the company,” he said.
In the financial services business, its loan book stood at ₹51,429 crore as on December 31, 2019, against ₹53,055 crore as of September 2019. It attributed it to reduction of large single borrower exposures.
“As of December 2019, only one exposure is higher than the threshold of 15 per cent of net worth, whereas all other exposures are below 12 per cent of the net worth of the financial services business,” it said.
It further said that in wholesale financing, it is selectively tapping superior ‘risk-reward’ and last-mile funding opportunities, and is building and scaling-up a retail consumer financing business.
Gross non-performing asset ratio increased to 1.8 per cent as of December 2019 against 0.9 per cent as of September 2019, which it attributed to some accounts moving from stage 2 to stage 3.
On Tuesday, the shares of PEL closed 6.09 per cent higher at ₹1,419.35 apiece on the BSE.
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