Piramal Enterprises Q1 profit up 31% at Rs302 crore
Mumbai: Ajay Piramal-controlled conglomerate Piramal Enterprises Ltd on Tuesday said consolidated net profit for the quarter ended June rose nearly 31% to Rs302 crore, led by strong growth in its financial services and pharmaceutical businesses.
Total income during the period rose 27.8% from a year ago to Rs2,338 crore, Piramal Enterprises said in a filing to the BSE.
Interest expenses rose during the quarter as the company borrowed for making investments in financial services and funding acquisitions.
“Strong profitability was mainly on account of improved top-line performance in financial services and pharma business,” the company said in a statement.
The group’s income from financial services rose 70.9% to Rs1,084 crore in the quarter. During the period, loan book expanded 79% over last year to Rs28,648 crore. Gross assets under management stood at Rs6,727 crore during the quarter.
“Our loan book continued to grow at an impressive pace …simultaneously maintaining a healthy asset quality. We continue to maintain strong focus on quality, compliance and risk mitigation across our business,” said Ajay Piramal, chairman, Piramal Enterprises.
The company said it has successfully exited two corporate financing deals—Navayuga and Regen Infrastructure. Piramal Enterprises had invested Rs425 crore in Hyderabad-based Navayuga Road Projects Pvt. Ltd and Rs300 crore in Chennai-based renewable energy company ReGen Powertech Pvt. Ltd.
The group’s pharma business posted revenue of Rs887 crore against Rs851 crore a year ago. It has also completed the transition and integration of Gablofen, a severe spasticity management product, acquired from Mallinckrodt in the US.
Revenue from its global pharma business rose by 9.7% to Rs845 crore in the first quarter on the back of integration of products acquired from US-based Mallinckrodt LLC. However, revenue from domestic consumer products business fell 48% to Rs42 crore due to channel de-stocking ahead of new good and services tax (GST) regime.
“However, as per AC Nielsen, the consumer offtake remains unchanged, indicating present situation to be merely a stocking issue. Key initiatives are being taken, to smoothly and swiftly transition to GST and business is expected to largely recover the revenue shortfall during Q1, in the next quarter,” the company said.
Piramal Enterprises shares closed at Rs2,958.75 on the BSE on Tuesday, up 0.32% from its previous close, while the benchmark Sensex index closed 0.19% up at 32,575.17 points.