Piramal Enterprises has posted 29 per cent growth in its profit before tax (PBT) at Rs 733 crore in the quarter ended September FY20 (Q2FY20), compared to Rs 570 core in the same period of the last financial year.
The net profit of the company was up 18 per cent at Rs 569 crore in Q2FY20 compared to Rs 480 crore in Q2FY19 on account of good growth in total income driven by pharma and other businesses and lower operating expenses.
The revenue of the company saw an increase of by 15 per cent to Rs 3,604 crore for Q2FY20 compared to Rs 3,144 crore in Q2FY19. The shares of Piramal Enterprises closed at Rs 1,556.35, up 6 per cent, on the BSE.
As far as the financial services arm of the company is concerned, the loan book of the company stood at Rs 53,055 crore in the quarter ending September FY20, with retail portfolio at Rs 6,393 crore constituting 12 per cent of the entire loan book form 4 per cent in the same period last financial year. The developer portfolio constituted 48 per cent of the loan book, which was earlier 66 per cent of the loan book. The company has disbursed Rs 3,100 crore worth of loans In Q2FY20, down 35 per cent sequentially. It had disbursed Rs 4,800 crore worth of loans in Q1FY20. The net interest margin (NIM) of the company stood at 5.4 per cent.
Amid challenging business environment, PEL’s loan book shrunk sequentially from Rs 56,605 crore in June 2019 to Rs 53,055 crore at the end of September 2019.This was the second successive quarter in which the company saw a contraction in outstanding loans. Its loan book was Rs 56,624 crore in March 2019.
The asset quality of the company deteriorated marginally with gross non-performing assets at 0.9 per cent in Q2FY20 compared to 0.5 per cent in Q2FY19. Sequentially, the asset quality has remained stable at 0.9 per cent. The provisioning for bad loans of the company was 1.8 per cent of the loan book.