Piramal Enterprises logs Rs 151 cr net profit in Q4, overcomes loss

Board recommends a dividend of Rs 33 per share, subject to shareholder's approval.

Piramal Enterprises reported on Thursday a consolidated net profit of Rs 151 crore in the January-March quarter of FY22, compared to loss of Rs 510 crore in the year-ago period. The net profit was factored additional provisioning of Rs 822 crore and interest reversal of Rs 215 crore.

Revenues were up 16 per cent year-on-year (YoY) to Rs 4,163 crore in Q4FY22 as against Rs 3,402 crore. For the whole year (FY22), revenues of the company grew 9 per cent to Rs 13,993 crore.

The board of the financial services-to pharmaceuticals conglomerate recommended a dividend of Rs 33 per share, subject to shareholder’s approval.

In the lending business, the company made a loss of Rs 321 crore in Q4FY22 as against Rs 243 crore net profit in the year ago period. It made provisions to the tune of Rs 3,735 crore in the same period. Gross non-performing assets (NPA) has remained stable sequentially at 3.4 per cent and net NPAs stood at 1.6 per cent.

The company re-evaluated its wholesale portfolio in the quarter to detect the impact on clients of the coronavirus pandemic or recent stresses in the economy. And, based on assessment, the company moved some of their non-real estate exposures to Stage 2 and thus, made additional provisioning and interest reversal totaling Rs 1,037 crore.

Over the next five years, the company is aiming to achieve a retail – wholesale mix of 2/3 retail and 1/3 wholesale; double the asset under management of the lending business; and grow retail disbursement at 40 – 50 per cent CAGR.

In the pharma business, revenue grew by 16 per cent year-on-year (YoY) to Rs 6,701 crore in FY22, with Indian consumer health care revenues jumping 48 per cent YoY, and complex hospital generics revenue up 20 per cent YoY. The company delivered an EBITDA of Rs 1,206 crore for FY22 , with an EBITDA margin at 18 per cent.

Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We have delivered a resilient performance in Q4 and FY22 across financial services and pharmaceuticals, against the backdrop of the pandemic and macro-economic headwinds".