Piramal Enterprises Ltd on Friday logged an 8.95 per cent decline in consolidated net profit to Rs 485.98 crore for the first quarter (Q1) ended June 30, impacted by higher expenses. The company had posted a consolidated net profit of Rs 533.79 crore in the same period last fiscal year, Piramal Enterprises Ltd (PEL) said in a regulatory filing.


Its revenue from operations in the first quarter stood at Rs 3,548.37 crore compared to Rs 2,908.68 crore in the year-ago period, it added. Total expenses in the quarter were higher at Rs 3,252.09 crore against Rs 2,492.97 crore a year ago.


PEL said its pharmaceuticals vertical clocked revenue of Rs 1,485.43 crore, up from Rs 1,362.02 crore in the year-ago quarter. The financial services segment registered a revenue of Rs 2,062.94 crore against Rs 1,546.66 crore in the first quarter of the last fiscal year, the company added.


During the AGM, PEL Chairman Ajay Piramal said, "In financial services, we achieved significant growth in retail disbursements through our branches as well as by leveraging digital lending capabilities. We remain ahead of our target to achieve disbursement levels of Rs 2,500-3,500 crore by the third quarter of this financial year."


“We had a steady first quarter delivering revenues of Rs 3,548 crore and net profits of Rs 486 crore. In financial services, we achieved significant growth in retail disbursements through our branches as well as by leveraging digital lending capabilities. We remain ahead on our target to achieve disbursement levels of Rs 2,500-3,500 crore by the third quarter of this financial year. This is in line with our endeavor to better serve the customers in the tier 2 and tier 3 cities of Bharat," Piramal said.


In pharmaceuticals, he said the company has been making both organic and inorganic investments across all its businesses. "We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3FY23 and unlock significant value for our stakeholders," the chairman said. 


"We completed the acquisition and integration of DHFL, the first financial services company to get resolved through the Insolvency and Bankruptcy Code route, and among the largest resolutions in value terms. This acquisition has been value-accretive and has also enabled us to achieve significant growth. The acquisition also enables us to create an India-wide platform to address diverse financing needs of the under-served ‘Bharat’ market, giving a further impetus to our business ambitions and targets," Piramal added.


Financials At A Glance



  • On-track to complete the Pharma demerger and simplification of the corporate structure by Q3 FY23, subject to various approvals 

  • PEL received the license from the RBI to commence business as a non-banking finance institution  

  • Q1 FY23 Revenues grew 22% YoY to Rs 3,548 Cr; Q1 FY23 PAT at Rs 486 Cr

  • Overall AUM grew +37 % YoY to Rs 64,590 Cr, retail loan book grew 332% YoY to Rs 22,267 Cr

  • Pharma business revenues grew 9% YoY to Rs 1,485 Cr for Q1 FY23

  • India Consumer Healthcare grew 17% YoY and Complex Hospital Generics business grew 10% YoY during the quarter

  • Strengthened Piramal Pharma Board by inducting three new board members