Ajay Piramal-controlled conglomerate Piramal Enterprises Monday reported a net loss of Rs 70 crore for the quarter ended June, due to a one-time accounting charge related to the sale of imaging business.
During the quarter, Piramal sold the Imaging business to Alliance Medical Group. Upon the sale of this business, there was a non-recurring and non-cash accounting charge of Rs. 452 crores towards Imaging Assets.
The company reported a net profit of Rs 302 crore in the corresponding quarter of previous year.
Excluding the exceptional item - the June quarter net profit grew 27 percent to Rs. 382 crore, on back of strong growth in its financial services and pharmaceutical businesses.
Total income during the period rose 29 percent from a year ago to Rs 2,902 crore, Piramal Enterprises said in a filing to the BSE.
Interest expenses rose 35 percent during the quarter as the company borrowed for making investments in financial services and funding acquisitions.
“We have commenced the new fiscal year with a strong financial performance on the back of robust growth across all our businesses,” said, Ajay Piramal, Chairman of Piramal Enterprises,
“During the quarter, we sold our Imaging business, which we believe will lead to improved profitability of the Pharma segment in the coming quarters,” Piramal added.
The group’s income from financial services rose 43.7 percent to Rs 1,559 crore in the quarter. During the period, loan book expanded 64 percent over last year to Rs 46,995 crore. Gross assets under management stood at Rs 7,620 crore as on June 30.
Financial services account 53.7 percent of the group’s revenues.
The gross NPA ratio remained stable at 0.3 percent. The net interest margin stood at 7.1 percent.
(All performance metrics excludes Shriram Capital)
“Post the completion of the merger of Piramal Finance and Piramal Capital with Piramal Housing Finance, we received a rating of AA+ Stable from CARE, a testimony to the strong performance of our loan book over several quarters, robust risk management metrics and our stringent in-house asset monitoring process,” Piramal said.
“We remain committed toward delivering improved performances through focused business strategies and superior execution to create long-term value for all our stakeholders," he added.
Revenue from pharma business rose by 17.6 percent to Rs 1,043 crore in the first quarter due to strong growth in active pharmaceutical ingredient (API) development at Aurora, Canada, Riverview, US and Ennore, India, strong volume growth at Mahad, India for Vitamins and premixes and stable performance of inhalation anesthetic business and Indian rupee depreciation during the quarter.
Revenue from global pharma that accounts for 94 percent of Piramal’s pharma revenues.
The company successfully cleared 5 regulatory inspections (including 1 USFDA inspections) and 51 customer audits during the period.
Shares of Piramal Enterprises dropped 0.31 percent and were trading at Rs 2652 at 2.22 pm on BSE, while the benchmark Sensex gained 0.40 percent to 37,487.27 points.
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