Piramal Q2 revenue up by 15% at INR 3604 crore

Piramal Q2 financial report

 

Net profit for the quarter up by 18% at INR 569 crore.

Piramal Enterprises Limited announced its consolidated results for the Second Quarter (Q2) and Half Year (H1) ended 30thSeptember 2019.

Financial Highlights

Revenue:

• Up 15% at INR 3,604 Crores during Q2 FY2020 vs INR 3,144 Crores in Q2 FY2019
• Up 18% at INR 7,110 Crores during H1 FY2020 Vs INR 6,047 Crores in H1 FY2019
• Profit before Tax & Exceptional items
• Up 29% to INR 733 Crores in Q2 FY2020 vs. INR 570 Crores in Q2 FY2019
• Up 25% to INR 1,338 Crores in H1 FY2020 vs. INR 1,073 Crores in H1 FY2019

Net Profit*:

• Up 18% to INR 569 Crores in Q2 FY2020 vs. INR 480 Crores in Q2 FY2019
• Up19% at INR 1,029 Crores during H1 FY2020 vs INR 863 Crores in H1 FY2019

Note: *) Net Profit excludes exceptional gain/loss for the period

Ajay Piramal, Chairman, Piramal Enterprises Ltd. said “Our diversified business model has enabled us to deliver resilient performance during this quarter, despite continued liquidity tightening in the NBFC sector. The strong fundamentals of the

Company are reflected in our H1 and Q2 results:

• H1 FY2020 revenues grew by 18% YoY to INR 7,110 Crores and net profit by 19% YoY to INR 1,029 Crores
• Q2 FY2020 revenues grew by 15% YoY to INR 3,604 Crores and net profit by 18% to INR 569 Crores

Our Financial Services business received inflows of ~INR 45,000 Crores over the past year and brought down CP borrowings by 92% to ~INR 1,480 Crores, reflecting the quality of our underwriting, client selection and risk management practices.

Pharma and Healthcare Insights businesses continue to consistently deliver strong performance quarter on quarter, acting as a natural hedge and bringing stability to the company’s performance, even in the most volatile market environment. Our Pharma revenues grew 19% YoY to INR 1,316 Crores in Q2:

• The Global Pharma business delivered strong EBITDA margins of 24%
• India Consumer Products business sustained its strong recovery with YoY revenue growth of 39% in Q2
• Healthcare Insights & Analytics business also grew by 14% to INR 333 Crores, delivering an EBITDA margin of 24% in Q2

We remain committed to bring in additional equity in the company in the near future, which will further bolster our plans to tap both organic and inorganic opportunities across our businesses.”

Operational Highlights

Financial Services

• Loan bookat INR 53,055 Cr. as of Sep-2019
• Total inflows of ~INR 45,000 Croresin the past one year (including fresh borrowings, repayments & prepayments) – equivalent to ~85% of the loan book

Assets-side:

• Housing Finance loan book grew ~3x times YoY to INR 6,393 Crores as of Sep-2019
• Share of retail loansat 12% of overall loan book (vs. only 4% a year ago)
• Share of wholesale residential RE at merely 48% of the overall loan book as of Sep-2019, with ~66% of loans towards mid/late stage or completed projects
• Repayments of ~INR 19,400 Crores in the past yearin the wholesale book, reflecting quality of underwriting
• Gross NPA ratio remains stable QoQ at 0.9%;provisioningat 194% of GNPAs

Liabilities-side:

• Raised ~INR 24,000 Crores of long-term funds sinceOct-2018, through bank term-loans, NCDs and ECBs
Exposure to CPs has reduced 92%YoY to INR 1,483 Crores from INR 18,017 Crores

Pharma and Healthcare Insights & Analytics

Overall Pharma Revenue grew 19% YoY during Q2 FY2020 to INR 1,316 Crore

Global Pharma:

• Consistent growth in Global Pharma: Revenue growth of 17% YoY during Q2 FY2020
• Robust H1 EBITDA margins of 24% for Global Pharma
Quality & Compliance: Successfully cleared 11 regulatory inspections (including 3 USFDA inspections) and 75 customer audits during H1
• Successfully made 3 new launches in key markets in Q2 taking the total number of launches in H1 to 7
• With addition of 30 new clients to the Global Pharma Services business in H1, the order book sustained the strong advancement seen last year

Consumer Products:

• Strong recovery in India Consumer Products – Revenue growth of 53% YoY during H1 FY2020
• Healthcare Insights & Analytics

Healthcare Insights & Analytics revenue grew 14% YoY during Q2 &H1 FY2020 with an improved EBITDA margins of 24% in Q2 through streamlining operating processes and leveraging India presence.