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Piramal Enterprises Results: Q1 Net Profit Up 11% At Rs 496 Cr

The company had posted a net profit of Rs 448.17 crore in the corresponding period of previous fiscal, Piramal Enterprises said in a filing to the BSE.

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Piramal Enterprises has 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 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.

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 inflection 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.”

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