Piramal Enterprises' consolidated net profit rose 11% to Rs 496 crore an 8% decline in total income to Rs 3,003 crore in Q1 June 2020 over Q1 June 2019.
On the segmental front, revenue from the financial services business were at Rs 1,899 crore (down 6% YoY) while the pharma business revenue was at Rs 1,038 crore (down 11% YoY) in the first quarter.
The company has made a provision of Rs 51 crore as an expected credit loss on financial assets during the quarter.
Profit before tax in Q1 FY21 stood at Rs 622 crore, down by 7% from Rs 671 crore in Q1 FY20. Income tax expense declined 25% on a year-on-year (YoY) basis to Rs 161 crore during the quarter.
Ajay Piramal, chairman, Piramal Enterprises, 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.
Piramal Enterprises (PEL) is one of India's largest diversified companies, with a presence in financial services, pharmaceuticals and healthcare insights & analytics.
Shares of PEL fell 3.81% to end at Rs 1369.05 on Thursday. It traded in the range of 1355.35 and 1442.45 during the day.
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