Strong Performance for the Quarter
Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302) today announced its consolidated results for Third Quarter (Q3) of FY2019 and Nine Months (9M) ended 31 December 2018.
Up 22% at INR 3,489 Crores during Q3 FY2019 vs INR 2,858 Crores in Q3 FY2018
Up 25% at INR 9,536 Crores during 9M FY2019 Vs INR 7,648 Crores in 9M FY2018
- Net Profit:
Net profit up 23% to INR 603 Crores in Q3 FY2019 vs. INR 490 Crores in Q3 FY2018
Normalised Net profit1 up 25% at INR 1,466 Crores during 9M FY2019 vs INR 1,176 Crores in 9M FY2018
- Cash Profit:
Up 32% to INR 843 Crores in Q3 FY2019 vs. INR 638 Crores in Q3 FY2018
Up 30% to INR 1,939 Crores in 9M FY2019 vs. INR 1,486 Crores in 9M FY2018
- For the nine months period, the Company has delivered a 4-year Revenue CAGR of 26% and 4 years normalised net profits CAGR of 46%.
- The Company has been delivering 20%+ growth in Revenues and Net Profit, consistently over past 14 quarters.
Note 1) Excluding non-recurring and non-cash accounting charge towards Imaging assets for Q1 FY2019
- Total Loan Book grew by 45% to INR 55,255 Crores, as on 31 December 2018 vs INR 38,036 Crores, as on 31 December 2017
- The Financial Services segment recorded an ROE of 19.4% (considering Cash Tax and other synergies from the reverse merger)
- Gross NPA ratio (based on 90 dpd) was at 0.5%, total provisioning at 1.8%
- Housing Finance Loan book grew 69% Vs. Q2 FY2019 to Rs. 3,920 Crores, despite a volatile industry environment
- Raised ~INR 10,000 Crores via NCDs and bank loans during the quarter
- Commercial Paper borrowings reduced by 40% during the quarter
- Robust liquidity position, with nearly INR 5,400 Crores in the form of cash and several unutilized bank lines
- Global Pharma revenue grew 14.4% during the quarter.
- Successfully cleared 30 regulatory inspections (including 1 USFDA) and 138 customer audits during 9M FY2019
- Consumer Products revenue for the quarter grew by 23% over Q2 FY 2019 and 56% over Q1 FY 2019
- Healthcare Insights & Analytics revenue grew by 9% to Rs. 1,062 Crores for 9M FY2019
Mr Ajay Piramal, Chairman, Piramal Enterprises Ltd. (PEL) said, “We continue to consistently deliver strong performance during the quarter, despite the volatile business environment. For Q3 FY2019, PEL’s revenues grew by 22% to INR 3,489 Crores and net profit grew by 23% to INR 603 Crores, led by growth across Financial Services and Pharma businesses.
Our group’s credibility, robust track record and balance sheet strength enabled us to get enough liquidity from Banks and Mutual Funds, despite tightened liquidity for the sector over the last few months. We grew our overall loan book by 45% for the quarter to INR 55,255 Crores. Leveraging the opportunity, our Housing Finance business reported a strong loan book growth of 69% QoQ to Rs. 3,920 Crore. The Financial Services business reported Gross NPA of 0.5%.”
Consolidated Financial Performance
Notes: 1) Income under share of associates primarily includes our share of profits at Shriram Capital and our share of profit under JV with Allergan, as per the new accounting standards; 2) Normalised Net Profit after Tax for 9M FY2019 excludes non-recurring and non-cash accounting charge towards Imaging assets in Q1 FY2019.
Consolidated revenues grew by 22% to INR 3,489 Crores for Q3 FY2019 and 25% to INR 9,536 Crores for 9M FY2019. The Company has delivered a strong revenue performance with growth across Financial services and Pharma businesses. 39% of our 9M FY2019 consolidated revenues were earned in foreign currency.
The Net Profit was up 23% to INR 603 Crores in Q3 FY2019 as compared with INR 490 Crores in Q3 FY2018. Normalized net profit (excluding non-recurring and non-cash accounting charge towards Imaging assets in Q1 FY2019) was up 25% to INR 1,466 Crores in 9M FY2019 as compared with INR 1,176 Crores in 9M FY2018. The strong growth in profitability was on account of revenue growth especially in the Financial Services Business.
Interest expenses for Q3 FY2019 were higher primarily on account of the increase in borrowings for growing the lending business and a marginal increase in interest rates post Sep-2018.
Share of Associates
Income under share of associates for Q3 FY2019 primarily includes our share in the profits at Shriram Capital and under JV with Allergan.
Business-wise Revenue Performance
Note 1) Includes Global Pharma and Consumer product division.
2) Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to the current period.