Piramal Enterprises reported 32% fall in consolidated net profit to Rs 426 crore on a 6% decline in net sales to Rs 3,106 crore in Q2 FY22 over Q2 FY21.
Pharmaceuticals revenue was Rs 1,621.42 crore (up 12.5% YoY) while that from Rs 1,484.10 crore (down 20.2% YoY) in the second quarter.
With regard to financial services business, Piramal Enterprises said that the overall AUM increased 42% QoQ to Rs 66,986 crore, post the DHFL merger. Retail loan book increased 4.3x QoQ to Rs 22,273 crore as of Sep-2021. Share of retail loans increased from 11% in Jun-2021 to 33% in Sep-2021.
DHFL acquisition further improved ALM, the company said. The acquisition was partly funded by 10-year NCDs worth Rs 19,550 crore at 6.75% per annum (p.a.). There has been an improvement in asset quality metrics post the DHFL acquisition. Gross NPA ratio declined 140 bps QoQ at 2.9% while net NPA ratio also fell 75 bps QoQ to 1.5%.
With respect to pharma business, the company said that revenue grew by 20% YoY to Rs 2,983 crore for H1 FY2022 - India Consumer Healthcare revenues were up 54% YoY, Complex Hospital Generics revenues were up 26% YoY and CDMO revenues were up 11% YoY.
The company is investing organically and inorganically across all its Pharma businesses in H1 FY22. It completed acquisition of Hemmo Pharmaceuticals for Rs 775 crore. Riverview facility expansion of $35 million has been commenced. Aurora facility expansion of $22 million is nearing completion, it added.
OPBIDTA declined 17% to Rs 1,682 crore in Q2 FY22 from Rs 2,038 crore in Q2 FY21.
Profit before tax & exceptional items in the second quarter was Rs 566 crore, down by 24% from Rs 742 crore reported in the same period last year.
The company incurred an exceptional expense of Rs 153 crore during the quarter, which includes Rs 143 crore related to transaction cost for acquisition of DHFL in Q2 FY22.
Ajay Piramal, chairman, Piramal Enterprises Ltd. said, The second quarter of FY22 was transformational for our company and has significantly strengthened the foundation to support future growth. We successfully completed the acquisition and merger of DHFL and the total AUM has grown 42% QoQ to Rs 66,986 crore.
The acquisition has enabled us to diversify our loan book and scale up our retail lending portfolio through multi-product offerings that cater to the needs of the underserved customers of our country. Leveraging our data, analytics and technology capabilities, we aim to be a dominant player in the growing Tier 2-3 cities and be the lender of choice for budget-conscious customers.
Further, during the quarter, the board of directors approved the demerger of our pharmaceuticals business and simplification of the corporate structure. It will result in the creation of two separate listed entities in financial services and pharmaceuticals - thereby unlocking value for our shareholders. This is in line with our stated commitment as we continue to expand organically and inorganically across both the business segments.
Piramal Enterprises has diversified business interests in financial services and pharmaceuticals.
The scrip fell 3.73% to end at Rs 2714.05 on the BSE.
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