Conference Call with Piramal Enterprises Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript. Management in attendance: Ajay Piramal and Senior Team
Finance firm Piramal Enterprises Announced Q1FY23 Result : 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 Reserve Bank of India (RBI) to commence business as a non-banking finance institution (NBFC) Q1 FY23 Revenues grew 22% YoY to INR 3,548 Cr.; Q1 FY23 PAT at INR 486 Cr. Overall AUM grew +37 % YoY to INR 64,590 Cr.; retail loan book grew 332% YoY to INR 22,267 Cr. Pharma business revenues grew 9% YoY to INR 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 Overall Performance: Q1 FY23 revenue growth of 22 % YoY to INR 3,548 Cr. Vs INR 2,909 Cr. in Q1 FY22 Net Profit at INR 486 Cr. Vs. INR 534 Cr. in Q1 FY22 Financial Services (FS lending): Overall AUM grew +37 % YoY to INR 64,590 Cr. Retail loan book grew 4x YoY to INR 22,267 Cr. Retail loan disbursements increased 66% QoQ and ~13x YoY in Q1 FY23 to INR 2,459 Cr. FS business Pre-provision Operating Profit of INR 621 Cr. in Q1 FY23 vs. INR 378 Cr. in Q1 FY22 Cost of borrowings declined 130bps YoY and 40bps QoQ to 8.8% Launched Microfinance business in May-2022 Focus on talent, technology and governance structure for wholesale 2.0 on track Pharma Business: Pharma business revenues grew 9% YoY to INR 1,485 Cr for Q1 FY23 India Consumer Healthcare grew 17% YoY and Complex Hospital Generics business grew 10% YoY Planned capacity expansion in niche capabilities for the CDMO business at Aurora (Canada), Pithampur (India) and Digwal (India) completed Appointment of Mr. Herve Berdou as Chief Operating Officer, CDMO Strong growth in inhaled anaesthesia sales in the US. Intrathecal portfolio continues to command market share in the US Launched 7 new products in the India Consumer Healthcare business in Q1 FY23. Power brands showing strong growth. Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We had a steady first quarter delivering revenues of INR 3,548 Cr. and net profits of INR 486 Cr. 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 INR 2,500-3,500 Cr. 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. In wholesale, we continue to focus on making our existing loan book more granular as well as building a healthy deal pipeline across real estate and corporate lending, as part of the ‘Wholesale Lending 2.0’ strategy. We expect to double our loan book in the next 5 years, thereby achieving significant growth and making our overall loan book more retailoriented. In pharmaceuticals, we have been making both organic and inorganic investments across all our businesses. We have also demonstrated consistent execution against key strategic priorities. Our global footprint with a diversified revenue base, presence in attractive segments with high entry barriers, capability to meet a wide range of customer requirements across multiple geographies and best-in-class quality track record, provides greater stability from a long- term investment perspective. We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3 FY23 and unlock significant value for our stakeholders." Result PDF