Another quarter delivering superior growth and profitability performance
Mumbai, India, October 27, 2016 (GPN) : Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302) today announces its consolidated results for the Q2 and H1 FY2017.
H1 FY2017 Financial Highlights
·Strong revenue growth during the quarter and the half year
o Up 31% at Rs.1,966 Crores during Q2 FY2017 vs Rs.1,504 Crores in Q2 FY2016
o Up 29% at Rs.3,742 Crores during H1 FY2017 vs Rs.2,904 Crores in H1 FY2016
·Operating profit was :
o 67% higher at Rs.744 Crores during Q2 FY2017 vs Rs.445 Crores in Q2 FY2016
o 104% higher at Rs.1,382 Crores during H1 FY2017 vs Rs.678 Crores in H1 FY2016
·OPBITDA Margin was :
o Up at 38% in Q2 FY2017 vs. 30% in Q2 FY2016
o Up at 37% in H1 FY2017 vs. 23% in H1 FY2016
·Net Profit was :
o Up 30% at Rs.306 Crores during Q2 FY2017 vs Rs.235 Crores in Q2 FY2016
o Up 33% at Rs.537 Crores during H1 FY2017 vs Rs.405 Crores in H1 FY2016
H1 FY2017 Operational Highlights
· Critical Care business acquired injectable anaesthesia & pain management products from Janssen Pharmaceutica
· Loan Book grew 113% over last year generating 25%+ ROE with negligible NPAs
· Consumer Products revenue grew by 76% in Q2 FY2017. It acquired and launched multiple products in last few quarters
· Pharma Solutions acquired Ash Stevens, a US based CDMO focused on HPAPIs
· Pharma Solutions also announced next phase of capacity expansion at Coldstream for sterile manufacturing
· 20% of DRG’s workforce is now operating from India
Ajay Piramal, Chairman, Piramal Enterprises said, “We are pleased to share, that in continuation to previous quarters, Piramal Enterprises has recorded strong growth and robust profitability in the first half of FY2017. Our business strategy to grow both organically and inorganically, along with strong execution capabilities, enables us to consistently deliver healthy financial results. We remain committed to creating long term value for our shareholders.”
Consolidated revenues were 31% higher at Rs.1,966 Crores for Q2 FY2017 and 29% higher at
Rs.3,742 Crores for H1 FY2017. 48% of our Q2 FY2017 revenues and 51% of H1 FY2017 revenues
were generated in foreign currency.
Operating profit was 67% higher at Rs.744 Crores for Q2 FY2017 and 104% higher at Rs.1,382 Crores
for H1 FY2017, primarily driven by strong revenue growth. OPBITDA margin was higher at 38% in Q2
FY2017 and 37% in H1 FY2017.
Net Profit was 30% higher at Rs.306 Crores for Q2 FY2017 and 33% higher at Rs.537 Crores for H1
FY2017. Strong profitability was mainly on account of improved top-line, partly offset by increase in
interest expense and depreciation.
Interest expense for the Q2 FY2017 and H1 FY2017 was higher primarily on account of increase in debt
for making investments under Financial Services segment.
Share of Associates
Income under share of associates primarily includes our share in the profits of Shriram Capital for the
period. Our share of profit under JV with Allergan has also now been included under share of profit /
loss of Associate, as per the new accounting standards.
Healthcare segment delivered revenues of Rs.874 in Q2 FY2017 and Rs.1,725 Crores in H1 FY2017.
Revenues from Pharma Solutions business were at Rs.556 Crores in Q2 FY2017 and Rs.1,131 Crores
in H1 FY2017, broadly in line with corresponding period of the previous year. Currency fluctuation
impacted the revenues during the aforesaid period. During the quarter, we acquired Ash Stevens, a US
based CDMO focused on HPAPIs, including high potency anti-cancer agents. Also, we announced the
next phase of expansion at Coldstream facility.
Revenues from Critical Care business grew to Rs.218 Crores in Q2 FY2017 and to Rs.413 Crores in H1
FY2017. Growth was primarily led by improved performance in regulated markets. Emerging markets
faced economic challenges during the period. We added new customers for Sevoflurane in the US and
increased price for Isoflurane in the US. In Oct 2016, we acquired a portfolio of five injectable
anaesthesia & pain management products from Janssen Pharmaceutica.
Revenues from Consumer Products business grew by 76% at Rs.99 Crores in Q2 FY2017 and by 52%
at Rs.180 Crores in H1 FY2017. Strong growth was driven by both organic and inorganic initiatives.
undertaken over the past few quarters. All the key brands have registered gain in their share by
outperforming the market and acquired brands too performed remarkably surpassing their internal
Income from Financial Services was 99% higher at Rs.815 Crores for Q2 FY2017 and 98% higher at
Rs1,450 Crores for H1 FY2017. The growth in income was primarily driven by increase in size of Loan
Book. Loan Book grew by 113% to Rs.19,170 Crores as on 30 Sept 2016 vs Rs.9,020 Crores as on 30
Sept 2015. Construction finance now accounts for 52% of the total real estate loan book. Gross NPA
was reduced to 0.4% as on 30 Sept 2016 primarily on account of recovery in one of the old NPA
account. During the quarter, we integrated Structured Finance Group in to Piramal Fund Management
with a view to create a unified standalone wholesale alternatives business and boost growth in future.
Gross Assets under Management were at Rs.7,315 Crores. During the quarter, we completely exited
two of the vintage funds.
Revenues from Information Management business were marginally lower at Rs.262 Crores in Q2
FY2017 and grew by 2% to Rs.532 Crores in H1 FY2017. India headcount now represents ~20% of
DRG’s global workforce, with 240+ positions on-boarded in Bengaluru and Gurugram offices. During the
quarter, we invested in Context Matters, a leading provider of health economics data for pharmaceutical
industry market access intelligence that will enhance market access offerings of DRG.
Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to current period.
Our company shall also be uploading a results presentation on our website. For downloading a copy of the presentation and further information
on our financials, please visit our website: www.piramal.com