Piramal Enterprises Q1 Results FY2023, PAT at Rs. 486 crores

On 29th July 2022, Piramal Enterprises announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The company reported its Q1FY23 revenue growth at 22 % YoY to Rs. 3,548 crores Vs Rs. 2,909 crores in Q1 FY22 

- Net Profit stood at Rs. 486 crores Vs. Rs 534 crores in Q1 FY22 with a decline of 8.98% YoY.

Financial Services Business Highlights:

- Overall AUM grew by 37 % YoY to Rs. 64,590 crores 

- Retail loan book grew 4 times YoY to Rs. 22,267 crores 

- Retail loan disbursements increased 66% QoQ and by 13x YoY in Q1 FY23 to Rs. 2,459 crores

- FS business Pre-provision Operating Profit of Rs. 621 crores in Q1 FY23 vs. Rs. 378 crores in Q1 FY22 

- Cost of borrowings declined 130bps YoY and 40bps QoQ to 8.8%  

- Piramal launched the Microfinance business in May-2022 

Pharma Business Highlights:

- Pharma business revenues grew 9% YoY to Rs. 1,485 crores 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  

- Strong growth in inhaled anesthesia sales in the US. The 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

Commenting on the results, Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “We had a steady first quarter delivering revenues of Rs. 3,548 crores and net profits of Rs. 486 crores 

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 Rs. 2,500-3,500 crores by the third quarter of this financial year. This is in line with our endeavor to better serve the customers in 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 retail-oriented. 

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.”