23 October 2019 Piramal Enterprises (PIEL) PBT increased 29% YoY to INR7.3b in 2QFY20. However, with a tax rate of 36%, the company has not availed of the tax rate reduction this quarter. Net income (calc.) declined 7% QoQ to INR7.6b. Total equity in FS (ex Shriram Group) stands at INR143b. Debt to equity of FS declined to 2.9x versus 3.8x a quarter ago. Pharma revenue grew 17% YoY to INR13.2b. EBITDA margin improved to 24% from 22% a year ago. In the current environment, PIEL has focused on (a) reducing the top 10 exposures from INR140b to INR100b by Mar 20, (b) lowering the share of short-term borrowings and (c) diversifying the loan mix towards retail assets.