Finance company Piramal Enterprises announced Q4FY22 results: FY22 revenues at Rs 13,993 crore; FY22 Net Profit at Rs 1,999 crore Q4 FY22 Net Profit of Rs 151 crore vs Loss of Rs. 510 crore in Q4 FY21 The Board has recommended a dividend of Rs 33 per share, subject to shareholders’ approval FS business Pre-provision Operating Profit (PPOP) of Rs 379 crore in Q4 FY22 vs. Rs 243 crore in Q4 FY21 Overall AUM grew +33% YoY to Rs 65,185 crore; retail loan book grew 306% YoY to Rs 21,552 crore DHFL acquisition completed with most branches integrated and re-activated Pharma business revenues grew 16% YoY to Rs 6,701 Cr for FY22 India Consumer Healthcare grew 48% YoY and Complex Hospital Generics business grew 20% YoY during FY22 EBITDA margin for the Pharma business stood at 18% during FY22 Expect to complete the demerger in Q3 FY23, subject to various required approvals Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We have delivered a resilient performance in Q4 and FY22 across financial services and pharmaceuticals, against the backdrop of the pandemic and macro-economic headwinds. In financial services, we completed the integration with DHFL and achieved 100% Q-on-Q growth in retail loan disbursements in Q4 of FY22. We have re-activated almost all the branches and not only retained over 3,000 employees of the DHFL, but also created over 3,000 new jobs in the merged entity across India. We will continue to make requisite investments in talent and technology, to strengthen our ability to tap the latent business opportunities in the Bharat market. Post the DHFL acquisition, we will now leverage our sizable retail lending platform to double our AUM over the next 5 years, thereby significantly improving our mix towards retail. During the quarter, we further strengthened our balance sheet by making additional provisions towards Stage 2 assets. We also continue to retain the extraordinary provisions made in March 2020 towards the pandemic related risks In pharmaceuticals, we have been investing organically and inorganically across all our businesses. All our key businesses have a compelling plan for their growth and have continued to deliver against their respective strategic priorities despite challenging macro-environment. We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3 of FY23 and unlock significant value for our stakeholders." Result PDF
Conference Call with Piramal Enterprises Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Piramal Enterprises declares Q3FY22 result: Resilient performance in 9M FY22 despite COVID-19; Normalized Net Profit* at INR 1,978 Cr. Overall loan book grew +31% YoY to ~INR 60,600 Cr; retail AUM grew 4x YoY to INR 21,544 Cr. Pharma business delivered 15% revenue growth YoY and 22% EBITDA margins for Q3 FY22. Expect to complete the demerger in Q3 FY23, subject to various requisite approvals. Retail loan disbursements up 386% YoY in Q3 FY22 to INR 739 Cr. Reduction in cost of borrowings, -180 bps YoY Significant progress on integration of DHFL: Retained 3,000+ employees from DHFL New loan origination restarted at most DHFL branches as of December, 2021 Hiring trend to continue in FY23 as company expands retail operations pan-India, 2,000 offers rolled-out in the past 3 months Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “Q3 performance reflects the growth across both financial services and pharmaceuticals businesses. The acquisition of DHFL has been value accretive and has enabled us to achieve significant growth. It has materially given a further impetus to our business ambitions and targets. The capacity building in talent and technology, together with a robust business expansion plan gives us the confidence to create a sustainable and profitable retail franchise in coming years. In pharma, we have grown well, despite the logistical and supply chain constraints induced by the pandemic. We made further investments for expanding capacity in niche capabilities. Each of our pharma businesses have a compelling plan for their growth and profitability improvement in coming years. Further, our initiative to create two distinct sector focused entities is progressing well and we expect to complete the demerger in Q3 FY23, subject to various requisite approvals.” Result PDF