Piramal Enterprises profit down 9% in Q1

The company had acquired DHFL for Rs 34,250 crore and is in process of demerger of the pharmaceuticals business by Q3 FY23 to simplify its corporate structure.

Piramal Enterprises profit down 9% in Q1
The company is on track to achieve guidance of Rs 2,500-3,500 crore in disbursements by Q3FY23.

Piramal Enterprises on Friday posted a 9% year-on-year (y-o-y) decline in its consolidated net profit to Rs 486 crore in the three months ended June 30 on account of a rise in expenses. The company’s total expenses grew by 30% y-o-y to Rs 3,252 crore led by higher finance costs. Finance costs increased by 13% y-o-y to Rs 1,114 crore.

The company’s consolidated revenue from operations, which includes financial services and pharmaceutical business, improved 22% y-o-y to Rs 3,548 crore but was offset by rising costs.

Within financial services operations, retail loan disbursements stood at Rs 2,459 crore in Q1 FY23, with growth driven by customer acquisition and re-activation of branches of Dewan Housing Finance (DHFL) branches. The company is on track to achieve guidance of Rs 2,500-3,500 crore in disbursements by Q3FY23. Wholesale portfolio, which includes loans to real estate developers and corporate, reduced by Rs 1,310 crore, in line with the company’s strategy of making our wholesale book more granular and building a retail focused financial services company.

Gross non-performing asset (NPA) ratio improved marginally by 3 basis points (bps) to 3.7% as on June 30 and net NPA ratio rose by 2 bps to 1.8%, primarily due to movement of one wholesale account from stage-2 to stage-3, the company said.

The company’s revenue from pharmaceutical business grew by 9% y-o-y to Rs 1,485 crore in Q1FY23led by consumer healthcare and complex hospital generics operations.

Earlier this week, the company had received the approval from the Reserve Bank of India (RBI) to start non-banking finance company (NBFC) operations. The company had acquired DHFL for Rs 34,250 crore and is in process of demerger of the pharmaceuticals business by Q3 FY23 to simplify its corporate structure.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos