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Piramal Enterprises Q2 net profit declines 32% to Rs 426 crore

Piramal Enterprises on Thursday reported a 32.12 per cent decline in consolidated net profit at Rs 426.49 crore for the quarter ended September

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Piramal Enterprises | Q2 results

Press Trust of India  |  New Delhi 

Piramal Enterprises
Photo: Shutterstock

on Thursday reported a 32.12 per cent decline in consolidated net profit at Rs 426.49 crore for the quarter ended September, mainly on account of decline in sales in financial services segment and one time expense related to transaction cost for DHFL acquisition.

The company had posted a net profit of Rs 628.31 crore for the corresponding period of the previous fiscal, said in a regulatory filing.

Consolidated revenue from operations stood at Rs 3,105.52 crore for the quarter under consideration. It was Rs 3,301.84 crore for the same period a year ago, it added.

"The second quarter of FY22 was transformational for our company and has significantly strengthened the foundation to support future growth. We successfully completed the acquisition and merger of DHFL and the total AUM has grown 42 per cent Q-o-Q (quarter-on-quarter) to Rs 66,986 crore," Chairman Ajay Piramal said.

The acquisition has enabled the company to diversify its loan book and scale up its retail lending portfolio through multi-product offerings that cater to the needs of the underserved customers of India, he added.

"Leveraging our data, analytics and technology capabilities, we aim to be a dominant player in the growing tier 2-3 cities and be the lender of choice for budget-conscious customers," Piramal said.

During the quarter, the board of directors approved the demerger of the company's pharmaceuticals business and simplification of the corporate structure, he said.

"It will result in the creation of two separate listed entities in financial services and pharmaceuticals thereby unlocking value for our shareholders. This is in line with our stated commitment as we continue to expand organically and inorganically across both the business segments," Piramal said.

"Our balance sheet strength and uniqueness of our business models sets us apart, enabling us to create long-term value for our stakeholders, he added.

The acquisition of DHFL and its merger with Piramal Capital & Housing Finance Limited (PCHFL) was completed in September this year, Piramal Enterprises said.

Demerger of Pharma and Corporate Structure Simplification was approved by the board in October 2021, it added.

The pharmaceutical segment posted a revenue of Rs 1,621 crore for the second quarter ended September 2021. It was Rs 1,441 crore in the corresponding quarter of the last fiscal, the company said.

The financial services posted net sales of Rs 1,484 crore for the quarter under consideration. It was Rs 1,861 crore in the year-ago period. The Financial Services revenue does not reflect the consolidation of DHFL financials, it added.

The exceptional item of Rs 153 crore includes a one-time expense of Rs 143 crore related to transaction cost for acquisition of DHFL in Q2 FY22, the filing said.

Shares of Piramal Enterprises closed at Rs 2,714.05 apiece on BSE, down 3.73 per cent over previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, November 11 2021. 20:14 IST
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