Piramal Enterprises Q4 net profit rises 89 pc to Rs 180 cr

Piramal Enterprises Ltd today reported a 89 per cent jump in net profit at Rs 180 crore for the March quarter as compared to Rs 95 crore in the same period last year, following strong revenue growth across businesses.
The company reported 34 per cent increase in revenue at Rs 1,734 crore during the March quarter as against Rs 1,298 crore during the corresponding period last year.
The revenues for FY16 were Rs 6,610 crore, up 29 per cent from FY2015. Its net profit however declined sharply by 67 per cent at Rs 951 crore for FY16 as against Rs 2,850 crore in the previous year.

"The company has delivered a strong revenue performance with growth across all three business segments namely healthcare, healthcare information management and financial services. Our performance is a clear reflection of the strength in our business model and the determined execution of our proven growth strategy," PEL Chairman Ajay Piramal told reporters here.
"Since the sale of domestic formulations business to Abbott Laboratories in 2010, we have been constantly striving towards re-inventing the company. We have gone a long way in achieving the same over these last few years.
Throughout this period, we have generated year-on-year improved performance and made substantial progress in delivering long-term sustainable value", he added.

The company has enough capital to fund our growth plan as our debt equity ratio is 1.5 and enough leverage for growth, he added.

The company's healthcare segment reported revenue of Rs 955 crore in in the March quarter as compared to Rs 836 crore in the same period last year.
In FY 2016, revenues from healthcare businesses were Rs 3,558 crore compared to Rs 3,121 crore in FY2015, a growth of 14 per cent YoY.
Revenues from pharma solutions business grew by 6 per cent YoY to Rs 593 crore in Q4.
In FY 16, revenues grew by 14 per cent YoY to Rs 2,290, driven by good traction in both API and formulations business and contribution from our cold-stream acquisition, Piramal said.

Revenues from consumer products business grew by 15 per cent YoY to Rs 117 crore in Q4, driven by various organic and inorganic initiatives undertaken by the business.
The growth in income was primarily driven by increase in size of loan book. Loan book grew by 174 per cent to Rs 13,048 crore as on March 2016 as against Rs 4,766 crore as on March 2015.
Our entry into construction finance enabled us to significantly scale up our loan book. It now constitutes 42 per cent of the real estate loan book. Asset quality continued to remain robust with a GNPA ratio of 0.91 per cent, the chairman added.

Gross Assets under Management grew to Rs 8,717 crore during the quarter. We exited almost 100 per cent of corpus in all 3 vintage funds. During the year, we launched 'Piramal India Resurgent Fund' with a corpus of Rs 6,000 crore focusing on acquiring stressed loans, he said.