Piramal Enterprises Q4 up by 25% at INR 470 crore

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The company has delivered a 7 year Revenue CAGR of 28% and 7 year normalised net profits CAGR of 50%.

Piramal Enterprises Limited announced its consolidated results for Full Year and Fourth Quarter ended 31st March 2019.

Financial Highlights

Revenue:

Up 23% at INR 3,680 crore during Q4 FY2019 vs INR 2,991 crore in Q4 FY2018

Up 24% at INR 13,215 crore during FY2019 vs INR 10,639 crore in FY2018

Normalised Net Profit*:

Net profit up 25% to INR 470 crore in Q4 FY2019 vs INR 375 crore in Q4 FY2018

Net profit up 25% at INR 1,936 crore during FY2019 vs INR 1,551 crore in FY2018

Cash Profit:

Up 93% to INR 661 crore in Q4 FY2019 vs. INR 343 crore in Q4 FY2018

Up 42% to INR 2,600 crore in FY2019 vs. INR1,829 crore in FY2018

• The Company has delivered a 7 year Revenue CAGR of 28% and 7 year normalised net profits CAGR of 50%.

• The Company has been delivering 20%+ growth in Revenues and Net Profit, consistently over past 15 quarters.

• The Board recommended dividend of INR 28 per share for FY2019. Dividend pay-out ratio is 29%.

Note*: 1)Excluding non-recurring and non-cash accounting charge towards Imaging assets for Q1 FY2019&non-recurring exceptionalitemsin Q4FY20192) Excluding synergies on account of merger of subsidiaries in financial services segment for Q4 FY2018.

Operational Highlights

Financial Services

• Total Loan Book grew by 34% YoY to INR 56,624 crore
• The Financial Services segment recorded an ROE of 19% (considering cash tax and other synergies from the reverse merger)
• Gross NPA ratio (based on 90 dpd) was at 0.9%, provisioning stood at 1.93% of loan book
• Wholesale RE (excluding hospitality and Lease rental discounting) exposure has significantly declined from 83% in March 2015 to 63% in March 2019
• Housing Finance Loan book grew 32% vs Q3 FY2019 to INR 5,188 crore, representing 9% of overall loan book
• Raised ~INR 16,500 crore via NCDs and bank loans from Sept’18 to March’19
• Commercial Paper borrowings reduced by 50% to INR 8,900 crore since Sept’18
• Nearly INR 5,400 crore in the form of cash and several unutilized bank lines

Pharma

• Pharma revenue grew 11% YoYto INR 1,477 crore for the quarter and 11% to INR 4,786 crore for the full year
• Global Pharma EBITDA grew at 3 year CAGR of 24% to cross INR 1,000 crore with EBITDA margins increasing to 23% for the year
• Successfully cleared 44 regulatory inspections (including 2 USFDA) and 163 customer audits during FY2019

Healthcare Insights & Analytics

• Revenue grew by 16% YoY to INR270 crore for Q4 FY2019 and 10% YoY to INR 1,332 crore for FY2019

Ajay Piramal, Chairman, Piramal Enterprises Ltd. (PEL) said “We are pleased to announce that Piramal Enterprises has recorded another year of robust performance across both revenues and profitability. The Company has delivered 24% growth in revenues to INR 13,215 crore and a 26% growth in profit before tax (before exceptional items) to INR 2,478 crore for FY 2019. Our loan book has grown by 34% despite volatility in the NBFC sector. We also significantly diversified our borrowings by raising long-term funds of INR 16,500 crores since September 2018. Our 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.”

Consolidated Revenues

Consolidated revenues grew by 23% to INR 3,680 crore for Q4 FY2019 and 24% to INR 13,215 crore for FY2019. The Company has delivered a strong revenue performance with growth across Financial Services and Pharma businesses. 40% of the FY2019 consolidated revenues were earned in foreign currency.

Normalised Net Profit

The Normalised Net Profit was up 25% to INR 470 crore in Q4 FY2019 as compared with INR 375 crore in Q4 FY2018. Normalized net profit was up 25% to INR 1,936 crore in FY2019 as compared with INR 1,551 crore in FY2018. The strong growth in profitability was on account of revenue growthacross all segments.

Interest Expenses

Interest expenses for Q4 FY2019 were higher primarily on account of the increase in borrowings for growing the lending business.