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Piramal Enterprises Q3 profit rises 20% to Rs 724.19 crore

Piramal Enterprises Q3 result: The pharma giant Piramal Enterprises reported a 20.25 per cent increase in its consolidated net profit for Q3 which is mainly due to the growth in the pharma business. Here's for more

twitter-logo PTI        Last Updated: February 14, 2020  | 12:52 IST
Piramal Enterprises Q3 profit rises 20% to Rs 724.19 crore
Piramal's revenue from operations rose to Rs 3,805.67 crore in Q3 from Rs 3,489.30 crore in the previous year

Ajay Piramal-led Piramal Enterprises on Tuesday reported 20.25 per cent rise in consolidated net profit to Rs 724.19 crore for the quarter ended December 31, 2019 mainly on account of robust growth in the pharma business.The company had posted a profit of Rs 602.04 crore for the same period a year ago, Piramal Enterprises said in a filing to the BSE.

Revenue from operations also rose to Rs 3,805.67 crore for the quarter under review as against Rs 3,489.30 crore in the year-ago period. "We are pleased to announce consistent performance demonstrated by 14 per cent year-on-year revenue growth to Rs 10,915 crore and net profit growth by 20 per cent year-on-year to Rs 1,749 crore for nine months of FY2020, especially given the sectoral volatility in the markets that we operate in," company's Chairman Ajay Piramal said.

By the end of FY2020, "we will have exceeded our earlier stated commitment of bringing in Rs 8,000-10,000 crore of equity in the company, with inflows of up to around Rs 14,500 crore, through various initiatives including Preferential Allotment to CDPQ, sale of DRG and our Rights Issue that witnessed active participation from most existing large investors including the promoters," he said.

The company's repeated partnerships with marquee global and domestic investors are an affirmation of the robustness of its business model and future growth trajectory, he added. "With this capital infusion, our company is well-capitalized to tap both organic and inorganic opportunities arising from industry consolidation and effectively transform our Financial Services business from a largely wholesale business into a well diversified financial services business," Piramal said. In the pharma business, that is consistently delivering robust performance quarter after quarter, the company plans to further raise additional equity capital for its future growth, he added.

"Infusion of additional capital in Pharma is the next step towards unlocking value of the company," Piramal said.The company is transforming the Financial Services business into a well-diversified model across both wholesale and retail financing, Piramal Enterprises said.

The company plans to infuse growth capital into the pharma business, it added. It plans to bring pharma businesses under a subsidiary and raise funds by issuing a minority stake (less than 20 per cent) to potential financial investors. This fund raise will not just provide capital for growth, but will also enable value discovery for the pharma business, Piramal Enterprises said. The company plans to target both organic and inorganic growth opportunities across businesses it operates in. It is also evaluating re-entry in domestic formulations, it added. Shares of Piramal Enterprises were trading at Rs 1393.20 per scrip on the BSE, up 4.13 per cent from the previous close.

Also read: ITC Q3 net profit grows 29% to Rs 4,048 crore

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