Piramal Enterprises shares recover most early losses, settle 3 pc lower

Shares of Piramal Enterprises on Tuesday recovered most early losses and settled around 3 per cent lower.

In early trade, it had plunged nearly 14 per cent after the company reported a net loss of Rs 1,702.59 crore in the quarter ended March 31.

On BSE, it closed at Rs 900.95, down 3.36 per cent after plunging 9.99 per cent to Rs 839.05 during the day.

Scrip of the company, which sank 13.87 per cent to Rs 802.30 during the day on NSE, later closed 2.69 per cent lower at Rs 906.50.

In traded volume terms, 3.94 lakh shares were traded on BSE and over 84 lakh shares on NSE during the day.

The Ajay Piramal-led firm on Monday reported a net loss of Rs 1,702.59 crore in the quarter ended March 31, mainly on the back of additional provisioning in lieu of the challenges posed by the COVID-19 pandemic.

The company had reported a net profit of Rs 454.63 crore in the corresponding quarter of last fiscal.

Its total income for the quarter also declined to Rs 3,341 crore from Rs 3,408.62 crore as the company said it is focusing on deleveraging its business.

"The COVID-19 crisis comes at a time when there is prevailing slowdown. Therefore, the board thought it prudent to make an additional provisioning of Rs 1,903 crore, which has resulted in the total provisioning increase to Rs 2,693 crore, which represents 5.8 per cent of the book," Piramal said.