Piramal Enterprises announces Q3 numbers, net profit up 29 per cent

Piramal Enterprises (PEL) announced its nine month ending quarter results on Monday. It is one of India’s largely diversified companies, with a presence in Healthcare, Healthcare Information Management and Financial Services. The net profit of company increased by 29 per cent year on year (YoY) this quarter and reached to Rs 322 crores.

On financial front, the consolidated net revenue from operations of Piramal reached to Rs 1859 crores in Q3FY16 compared to Rs 1399 crores in Q3FY15, an increase of 32.86 per cent YoY. It has delivered a strong revenue performance with growth across all three business segments. 63% of Q3FY16 revenues and 9MFY16 revenues were earned in foreign currency.

The EBITDA stands at Rs 628 crores this quarter compared to Rs 320 crores in Q3FY15, an increase of 96 per cent YoY. The EBITDA margin of company stands  at 33.80 per cent this quarter compared to 22.90 per cent in Q3FY15. The substantial increase in EBITDA is primarily driven by strong revenue performance during the quarter, and fall in Research and Development (R&D ) expenses. R&D expenses were lower during the period on account of scaling back of investments in NCE research in FY2015. 

The net profit stands at Rs 322 crores in Q3FY16 compared to Rs 249 crores in Q3FY15, an increase of 29.19 per cent YoY. During the quarter the interest expenses of company increased by around 150 per cent and reached to Rs 250 crores compared to Rs 100 crores in Q3FY15. Interest expense increased primarily on account of increase in debt for making investments under Financial Services segment. 

The nine month ending net revenue from operations increased by 27 per cent and reached to Rs 4876 crores compared to Rs 3825 crores for the same period last year. EBITDA for same nine month period stands at Rs 1405 crores compared to Rs 692 crores, an increase of 103 per cent YoY. The net profit stands at Rs 770 crores compared to Rs 2755 crores for the same period last year, a decrease of 72 per cent YoY. The substantial decrease in net profit is attributed to loss of Rs 27 crores from exceptional items in this nine month period compared to profit of Rs 2692 crores for the same period last year. 

Segment wise 53 per cent of total revenue comes from Healthcare. In Q3 FY16, revenues from healthcare is Rs.915 crores as compared with Rs.784 crores in Q3 FY15, a growth of 17% YoY. Income from financial services was 131% higher at Rs.508 Crores for Q3 FY16. It consists of 27 per cent of total revenue of company. The growth in income was primarily driven by increase in size of Loan Book. Loan Book grew by 181% to Rs.11,070 crores as on 31 Dec 2015 vs Rs.3,933 crores as on 31 Dec 2014. Further revenues from Information Management business grew by 13% YoY to Rs.427 Crores in Q3FY16, primarily driven by growth in data and analytics products, and the acquisition of Healthcare Busines  Insights (HBI). Revenue from Information Management consists of 20 per cent of total revenue. 

The stock of company closed at Rs 947.90 on Monday, a decrease of 2.47 per cent from previous close.