Piramal Q4 net up 21 pc at Rs 375 cr

Piramal Enterprises today posted a 21 per cent increase in consolidated net profit at Rs 375 crore for the fourth quarter ended March 2018 on the back of robust growth in revenues and improved operational performance.

The company had reported a net profit of Rs 311 crore during the same period of the previous fiscal.

Net sales of the company rose by 21 per cent to Rs 2,991 crore as compared with Rs 2,463 crore in the same period of the previous fiscal, Piramal Enterprises said in a regulatory filing.

For the year ended March 31, the company posted a net profit of Rs 1,551 crore, an increase of 24 per cent, from Rs 1,252 crore in 2016-17.

Net sales during the year rose to Rs 10,639 crore as compared with Rs 8,547 crore in 2016-17, an increase of 24 per cent.

"We recently completed the process of merging Piramal Finance and Piramal Capital into Piramal Housing Finance with the intent of streamlining the financial services business, another step in the direction of potentially unlocking value of the company in future. We are confident that the synergies from the merger will help us augment our returns in the coming years," Piramal Enterprises Chairman Ajay Piramal said.

The company remains steadfast in its commitment to generate year-on-year improved performance and to drive innovative business initiatives that bolster growth, strengthen market leadership and consistently create long-term value for our shareholders, he added.

The company's board, which met today, recommended a dividend of Rs 25 per share of face value of Rs 2 each for the financial year ended March 31, 2018.

The board also approved the scheme of amalgamation between Piramal Phytocare Ltd and the company and their respective shareholders.

Besides, the board approved a proposal to initiate a transfer of certain assets and liabilities forming part of company's financial services business to Piramal Housing Finance Limited, a wholly-owned subsidiary, or any other subsidiary of the company for a net consideration not exceeding Rs 2,950 crore, in one or more tranches, proposed to be concluded by end-December 2018.

The Administrative Committee of the board has been duly authorised to take all necessary actions and to do all necessary acts or things as may be required in this regard, Piramal said.

Mumbai-headquartered Piramal Enterprises has presence in various sectors, including financial services, pharmaceuticals and healthcare insights and analytics.

Shares of the company today ended 2.61 per cent up at Rs 2,468.35 apiece on the BSE.