Piramal Enterprises drops after reporting net loss in Q1

Piramal Enterprises lost 2.56% to Rs 573 at 10:31 IST on BSE after the company reported net loss in Q1 June 2013 due to a sharp increase in interest costs.

The Q1 result was announced after trading hours on Thursday, 25 July 2013.

Meanwhile, the S&P BSE Sensex was up 26.80 points or 0.14% at 19,831.56.

On BSE, 1,442 shares were traded in the counter as against average daily volume of 6,811 shares in the past one quarter.

The stock hit a high of Rs 595 and a low of Rs 568.70 so far during the day. The stock had hit a 52-week low of Rs 395 on 6 November 2012. The stock had hit a record high of Rs 624.90 on 28 March 2013.

The stock had outperformed the market over the past one month till 25 July 2013, jumping 23.19% compared with the Sensex's 6.31% surge. The scrip had, however, underperformed the market in past one quarter, advancing 3.1% as against Sensex's 2.05% rise.

The large-cap company has equity capital of Rs 34.51 crore. Face value per share is Rs 2.

The company reported consolidated net loss of Rs 146.7 crore in Q1 June 2013, compared with net profit of Rs 4.10 crore in Q1 June 2012. Total operating income jumped 29.8% to Rs 970.20 crore. Operating profit (OPBITDA) jumped 86.11% to Rs 146.10 crore in Q1 June 2013 over Q1 June 2012.

The company's interest cost jumped 279.9% to Rs 332.50 crore in Q1 June 2013 over Q1 June 2012, as the company raised funds to invest in its NBFC operations and in shares of Shriram Transport Finance Company. The company acquired a minority stake of about 10% in Shriram Transport Finance Company for Rs 1634 crore in May 2013. The interest expenses for the quarter include one-time financing charges of Rs 162.80 crore. Excluding these one-time financing charges, the company would have reported a net profit of Rs 16.10 crore in Q1 June 2013, PEL said in a statement.

Piramal Enterprises (PEL) is one of India's largest diversified companies, with a presence in pharmaceutical, financial services and information management sectors.

Powered by Capital Market - Live News