Friday, 30 October 2020

Piramal Enterprises Limited Announces

 Piramal Enterprises Limited Announces Consolidated Results
for Q2 & H1 FY2021

 

Resilient Performance despite a Challenging Business Environment Globally

- Net profit increased by 14% YoY to INR 628 Cr for Q2 FY21 and by 12% YoY to INR 1,124 Cr for H1 FY21

- Strengthened Balance Sheet and improved Liquidity position:

§  Raised Long-Term Borrowings of ~INR 11,500 Cr. during H1 FY2021

§  Received Growth Capital of INR 3,523.40 Cr. from The Carlyle Group in Piramal Pharma

 Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302, 912460) today announced its consolidated results for the Second Quarter (Q2) and Half Year (H1) ended September 30, 2020.

 

Consolidated Financial Highlights

§  Balance Sheet:

-          Shareholders’ Equity increased by 28% to INR 34,739 Cr.* since Mar 19

-          39% reduction in Net Debt by nearly INR 22,000 Cr.* since Mar 2019

-          Net Debt-to-Equity of below 1x times* at entity-level

*Post Pharma deal closed in October 2020

 

§  Inflows / Borrowings:

-          Total inflows of ~INR 42,800 Cr. since April 2019, through equity and borrowing transactions

·         Raised long-term borrowings of ~INR 11,500 Cr. during H1 FY2021

-          Reduction in CPs to INR 2,100 Cr. as of Sep 2020 from INR 18,017 Cr. as of Sep 2018

 

§  P&L:

-          Revenue for Q2 FY21 increased by 1% YoY to INR 3,302 Cr.

-          Net Profit for Q2 FY21 increased by 14% YoY to INR 628 Cr.

-          Net Profit for H1 FY21 grew by 12% YoY to INR 1,124 Cr.                                                           


Mr. Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We have delivered a resilient performance with net profit of INR 1,124 Crore for H1 FY21, despite adverse global environment. Continuing to focus on strengthening our balance sheet, over the past year, we brought in INR 18,000 Cr of capital and reduced our net debt-to-equity ratio to below 1x.

In Financial Services, we saw early signs of recovery across the key sectors that we lend to. Progressing on the stated strategy of diversifying the loan book, we will be launching our multi-product retail lending platform in November 2020.

The Pharma Business recorded a healthy improvement in both revenue growth and profitability. It also completed the 20% growth investment by The Carlyle Group - which is an affirmation of the robustness of the business model and consistency in performance. Both businesses are now at an inflection point, where we see a good runway for strong performances in the mid to long-term.”

 

Key Business Highlights

Financial Services

Pharma

§  In line with our Strategy to diversify our book, launching the multi-product Retail Lending business in Nov-2020

 

§  Early trends indicate better performance of developer clients than assumed under stressed scenario for creating provisions

 

§  Continue to increase granularity of our wholesale loan book.

-          Exposure to only one account at >15% of the net worth of Financial Services

 

§  Conservative provisions of INR 3,037 Cr. as of Sep 2020, equivalent to 237% of GNPAs and 5.9% of overall loan book

 

§  Capital Adequacy Ratio at 34% (vs. 22% as of March 2019)

§  Closed fund raising deal with The Carlyle Group

-          Deal values our Pharma business at an Enterprise Value of USD 2.7 - 3.1 Bn.

-          Received INR 3523.40 Cr. as proceed from Pharma Fund raise.

§  Revenue of INR 1,441 Cr. (+9% YoY) with EBITDA margins of 23% for Q2FY2021

-          CDMO Revenue up 20% YoY

-          India Consumer Products up 25% YoY

 

§  Other Highlights

-          CDMO order book witnessing healthy growth

-          India Consumer Products business launched 15 products and 38 SKUs during the year

-          Complex Hospital Generics now seeing recovery

-          Cleared 4 regulatory inspections

 

 

Business-wise Revenue Performance                                                                             (INR Crores or as stated)

Net Sales break-up

Quarter II ended

Half year ended

30/9/20

30/9/19

% Change

% Sales

30/9/20

30/9/19

% Change

% Sales

Financial Services

1,861

1,954

-5%

56%

3,760

3,968

-5%

60%

Pharma

1,441

1,317

9%

44%

2,479

2,489

-

40%

Pharma CDMO

866

724

20%

26%

1,480

1,373

8%

24%

Complex Hospital Generics

438

477

-8%

13%

763

891

-14%

12%

India Consumer Products

140

112

25%

4%

244

222

10%

4%

Total

3,302

3,271

1%

6,239

6,457

-3%

 

 

Consolidated Financial Performance                                                                              (INR Crores or as stated)

Particulars

Quarter II ended

Half year Ended

30-Sep-20

30-Sep-19

% Change

30-Sep-20

30-Sep-19

% Change

Net Sales

3,302

3,271

1%

6,239

6,457

-3%

Non-operating other income

38

46

-18%

103

110

-7%

Total income

3,339

3,316

1%

6,342

6,568

-3%

Other Operating Expenses

1,278

1,188

8%

2,369

2,363

0%

Expected Credit loss

24

-107

75

-152

OPBIDTA

2,038

2,236

-9%

3,898

4,357

-11%

Interest Expenses

1,156

1,337

-14%

2,260

2,665

-15%

Depreciation

139

128

9%

274

250

10%

Profit / (Loss) before tax & exceptional items

742

770

-4%

1,364

1,441

-5%

Exceptional items (Expenses)/Income

39

0

39

0

Income tax

Current Tax and Deferred Tax

204

258

-21%

365

474

-23%

DTA and MAT Credit written off

0

0

0

0

Profit/(Loss) after tax (before MI & Prior Period items)

578

512

13%

1,039

968

7%

Minority interest

0

0

0

0

Share of Associates

50

96

-48%

85

169

-50%

Net Profit/(Loss) after Tax from continuing operations

628

608

3%

1,124

1,137

-1%

Profit / (Loss) from Discontinued operations

0

-57

0

-137

Net Profit after Tax

628

551

14%

1,124

1,000

12%


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