The company’s consolidated revenues from operations grew 15% y-o-y to Rs 3,603.56 crore owing to growth in financial services and pharmaceutical businesses.
Piramal Enterprises (PEL) on Monday reported an 18% year-on-year rise in its consolidated net profit to `569 crore for the quarter ended September 30, 2019.
In notes to the profit and loss account, Piramal said exceptional items include severance payments of `14.05 crore, in relation to the company’s wholly owned subsidiary Piramal Holdings (Suisse) SA selling its entire ownership in Piramal Imaging SA and its subsidiaries for a cash consideration.
The company’s consolidated revenues from operations grew 15% y-o-y to Rs 3,603.56 crore owing to growth in financial services and pharmaceutical businesses. Foreign currency denominated revenue in the second quarter was `1,398 crore, which is 39% of total revenue. Revenue from financial services witnessed an increase of 13% y-o-y to Rs 1,954 crore.
Ajay Piramal, chairman, Piramal Enterprises, said the company’s diversified business model has enabled it to deliver resilient performance during this quarter, despite continued liquidity tightening in the NBFC sector. “Our financial services business received inflows of `45,000 crore over the past year and brought down CP borrowings by 92% to around Rs 1,480 crore, reflecting the quality of our underwriting, client selection and risk management practices,” he said.
The loan book in the financial services business stood at Rs 53,055 crore as on September 2019. Total inflows of Rs 45,000 crore in the past one year, which include fresh borrowings, repayments and prepayments were equivalent to about 85% of the loan book.
On the asset side, PEL’s housing finance loan book grew about 3x y-o-y to Rs 6,393 crore as of September 2019. Share of retail loans stood at 12% of the overall loan book against 4% a year ago. Share of wholesale residential real estate is 48% of the overall loan book, with about 66% of loans towards mid to late stage or completed projects. PEL said it has received repayments of about Rs 19,400 crore in the past year in the wholesale book, “reflecting quality of underwriting”. Gross NPA ratio remained stable sequentially at 0.9%; provisioning stood at 194% of GNPAs.
PEL raised Rs 24,000 crore of long-term funds since October 2018 through bank term loans, NCDs and ECBs.