Piramal Enterprises reports 10% rise in Q3 net profit at Rs 799 crore

The company with two prominent business units - finance and pharma - reported a three per cent drop in consolidated revenues at Rs 3,169 crore in Q3FY21

Piramal Enterprises on Thursday reported 10 per cent growth in consolidated net profit at Rs 799 crore for the quarter ended December, 2020 (Q3FY21) as against Rs 724 crore in same quarter previous year (Q3Fy20).

The company's two prominent units--finance and pharma--reported a three per cent drop in consolidated revenues at Rs 3,169 crore in Q3FY21 compared Rs 3,270 crore in Q3FY20.

The net sales of financial services dropped by 9 per cent to Rs 1,795 crore for the quarter ended December, 2020 from Rs 1,963 crore in Q3FY20. The net sales in pharma unit grew by 5 per cent to Rs 1,374 crore in Q3FY21 from Rs 1,307 crore in Q3FY20, according to a press statement.

Its stock closed 0.7 per cent higher at Rs 1,633 per share on BSE.

Gross Non-Performing Asset (NPAs) ratio (pro-forma) were at 3.7 per cent as of December 2020 without the Supreme Court dispensation, up from 1.8 per cent in December 2019. The net NPAs rose to 1.8 per cent in December 2020 from 1.4 per cent in December 2019.

The total loan book size was Rs 46,370 crore in December 2020.

The capital adequacy ratio stood at 37 per cent in December 2020, up from 29 per cent a year ago.

Ajay Piramal, Chairman, Piramal Enterprises said, the company has shown resilient performance despite the global Covid-19 impact. Pursuant to significantly strengthening our balance sheet, PEL is now progressing on the next round of major transformations across both Pharma and Financial Services businesses.

The company is changing Financial Services' business model from wholesale-led to a well-diversified one; It was also a one of the key objectives behind bidding for DHFL.

The company is also working towards creating a large differentiated listed Pharma company, post the growth capital raise from The Carlyle Group.

These are focused steps towards a shift from a multi-sector conglomerate structure into one with focused listed entities within the Pharma and Financial Services sectors, the company said.