Mumbai, India, July 30, 2020: Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302, 912460) today announced its consolidated results for the First Quarter (Q1) FY2021 ended 30th June, 2020.
Financial Highlights
Capital Raise in Pharma:
- Agreement with marquee global investor, Carlyle, for a fresh equity investment of USD 490m for a 20% stake in Piramal Pharma; valued at an EV of USD 2,775m, with an upside component of up to USD 360m
Key Balance Sheet Highlights:
- Shareholder’s Equity increased by 15% to INR 31,018 Cr. vs. INR 26,856 Cr. last year
- Net Debt reduction of INR 13,902 Cr. since the last 1-year; net debt-to-equity falls to 1.2x vs. 1.9x a year ago
Inflows / Borrowings:
- Raised long-term borrowings of ~INR 9,600 Cr. during Q1 FY2021
- Total inflows of nearly INR 35,680 Cr. in the last 1-year* through debt (≥ 1-year tenure) / equity /divestment transactions
*Includes proceeds of INR 2,300 Cr. received from stake sale in Shriram Transport Finance (STFC) in June 2019
Key P&L Highlights:
- Revenue declined by 8% YoY to INR 2,937 Cr. from INR 3,187 Cr.
- Net Profit grew by 11% YoY to INR 496 Cr. from INR 448 Cr.
Mr Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We have delivered a resilient performance in Q1 with 11% YoY net profit growth to INR 496 Cr. During the quarter, we substantially enhanced our liquidity position and strengthened our balance sheet. Despite the slowdown caused by the global pandemic, we signed an agreement with global investment firm – Carlyle, to raise strategic growth investment of USD 490m in Piramal Pharma. These re-affirm the inherent robustness of our businesses. In Financial Services, we have made significant progress on our key strategic priorities as we continue to build our multi-product, tech-enabled retail lending platform, as well as to increase granularity in the wholesale portfolio.
With clearly defined growth roadmaps in place for both our businesses, we are now at an inflexion point to deliver sustainable long-term performance. I would like to acknowledge and thank our employees for their exceptional contributions in this difficult global environment.”
Key Business Highlights
Financial Services:
- Overall loan book at INR 51,265 Cr.
- The increasing granularity of the loan book; top-10 exposures reduced by ~INR 4,000 Cr. over last year
- Conducted a scenario analysis at the onset of the COVID-19 outbreak to assess its impact on the portfolio and we continue to take proactive corrective actions to mitigate potential risks
- Making significant progress on building a digitally-led, multi-product retail lending platform
− Laying the foundation of the business and incorporating learnings from the current environment
- GNPA ratio at 2.5% (vs. 2.4% as of Mar-2020), with conservative provisioning at 5.9% of the loan book
− Provisioning for wholesale loans at 6.3% and for non-NPA accounts at 5%, as of Jun-2020
- Capital Adequacy ratio at 33% (vs. 23% as of June-2019)
- Net debt-to-equity at 2.2x times (vs. 4.4x as of Dec-2018)
Pharma:
- Delivered revenues of INR 1,038 Cr. in Q1 FY 2021 i.e. nearly 90% of Q1 FY2020 revenues, despite global COVID-19 pandemic impact
- Acquired a Solid Oral Dosage Drug Product Facility in the USA, in line with our strategy to also focus on inorganic opportunities
- India Consumer Products grew by 28% QoQ to 104 Crores
Business-wise Revenue Performance
(INR Crores or as stated)
| Diversified revenue mix | Quarter I ended | % Sales
for Q1 FY2021 |
||
| 30-June-20 | 30-June-19 | % Change | ||
| Financial Services | 1,899 | 2,014 | -6% | 65% |
| Pharma | 1,038 | 1,172 | -11% | 35% |
| Pharma Solutions | 614 | 649 | -5% | 21% |
| Pharma Critical Care | 324 | 414 | -22% | 11% |
| India Consumer Products | 104 | 109 | -4% | 4% |
| Total | 2,937 | 3,187 | -8% | 100% |
- Foreign Currency denominated revenue in Q1 FY2021 was Rs.861 Cr. (29% of total revenue)
- Pharma revenue includes certain Foreign exchange income
Consolidated Financial Performance
| Particulars | Quarter 1 ended | ||
| In Crores or as stated | June 30th, 2020 | June 30th, 2019 | % Change |
| Net Sales | 2,937 | 3,187 | -8% |
| Non-Operating income | 65 | 64 | 2% |
| Total income | 3,003 | 3,251 | -8% |
| Other Expenses | 1,091 | 1,175 | -7% |
| Expected Credit loss | 51 | (45) | – |
| OPBIDTA | 1,861 | 2,121 | -12% |
| Interest Expenses | 1,105 | 1,329 | -17% |
| Depreciation | 135 | 121 | 11% |
| Profit before tax & exceptional items | 622 | 671 | -7% |
| Exceptional items expenses/(Income) | – | – | |
| Income tax | 161 | 216 | -25% |
| Profit after tax (before MI & Prior Period items) | 461 | 456 | 1% |
| Minority interest | – | – | – |
| Share of Associates1 | 35 | 73 | -52% |
| Net Profit after Tax from continuing operations | 496 | 529 | -6% |
| Less: Loss from Discontinuing operations | – | (80) | – |
| Reported Net Profit | 496 | 448 | 11% |
Note: 1. Income under the share of associates primarily includes our share of profits at Shriram Capital and profit under JV with Allergan, as per the applicable accounting standards. 2. Previous year figures are restated for accounting effect of Piramal Phytocare merger
Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to the current period.
To download the presentation of the results and for further information on our financials, please visit our website: www.piramal.com
