 "Piramal Enterprises profit before tax rises 29% to Rs 733 crore in Q2")
Piramal Enterprises has posted 29 per cent growth in its profit before tax (PBT) at Rs 733 crore in the quarter ended September FY20 (Q2FY20), compared to Rs 570 core in the same period of the last financial year.
The net profit of the company was up 18 per cent at Rs 569 crore in Q2FY20 compared to Rs 480 crore in Q2FY19 on account of good growth in total income driven by pharma and other businesses and lower operating expenses.
The revenue of the company saw an increase of by 15 per cent to Rs 3,604 crore for Q2FY20 compared to Rs 3,144 crore in Q2FY19. The shares of Piramal Enterprises closed at Rs 1,556.35, up 6 per cent, on the BSE.
As far as the financial services arm of the company is concerned, the loan book of the company stood at Rs 53,055 crore in the quarter ending September FY20, with retail portfolio at Rs 6,393 crore constituting 12 per cent of the entire loan book form 4 per cent in the same period last financial year. The developer portfolio constituted 48 per cent of the loan book, which was earlier 66 per cent of the loan book. The company has disbursed Rs 3,100 crore worth of loans In Q2FY20, down 35 per cent sequentially. It had disbursed Rs 4,800 crore worth of loans in Q1FY20. The net interest margin (NIM) of the company stood at 5.4 per cent.
Amid challenging business environment, PEL’s loan book shrunk sequentially from Rs 56,605 crore in June 2019 to Rs 53,055 crore at the end of September 2019.This was the second successive quarter in which the company saw a contraction in outstanding loans. Its loan book was Rs 56,624 crore in March 2019.
The asset quality of the company deteriorated marginally with gross non-performing assets at 0.9 per cent in Q2FY20 compared to 0.5 per cent in Q2FY19. Sequentially, the asset quality has remained stable at 0.9 per cent. The provisioning for bad loans of the company was 1.8 per cent of the loan book.
The asset quality of the company deteriorated marginally with gross non-performing assets at 0.9 per cent in Q2FY20 compared to 0.5 per cent in Q2FY19. Sequentially, the asset quality has remained stable at 0.9 per cent. The provisioning for bad loans of the company was 1.8 per cent of the loan book.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%