INSUBCONTINENT EXCLUSIVE:
Ajay Piramal-led Piramal Enterprises on Tuesday reported 20.25 per cent rise in consolidated net profit to Rs 724.19 crore for the quarter
ended December 31, 2019 mainly on account of robust growth in the pharma business
The company had posted a profit of Rs 602.04 crore for the same period a year ago, Piramal Enterprises said in a filing to the BSE
Revenue from operations also rose to Rs 3,805.67 crore for the quarter under review as against Rs 3,489.30 crore in the year-ago period
"We are pleased to announce consistent performance demonstrated by 14 per cent year-on-year revenue growth to Rs 10,915 crore and net
profit growth by 20 per cent year-on-year to Rs 1,749 crore for nine months of FY2020, especially given the sectoral volatility in the
markets that we operate in," company's Chairman Ajay Piramal said
By the end of FY2020, "we will have exceeded our earlier stated commitment of bringing in Rs 8,000-10,000 crore of equity in the company,
with inflows of up to around Rs 14,500 crore, through various initiatives including Preferential Allotment to CDPQ, sale of DRG and our
Rights Issue that witnessed active participation from most existing large investors including the promoters," he said
The company's repeated partnerships with marquee global and domestic investors are an affirmation of the robustness of its business model
and future growth trajectory, he added
"With this capital infusion, our company is well-capitalized to tap both organic and inorganic opportunities arising from industry
consolidation and effectively transform our Financial Services business from a largely wholesale business into a well diversified financial
services business," Piramal said
In the pharma business, that is consistently delivering robust performance quarter after quarter, the company plans to further raise
additional equity capital for its future growth, he added
"Infusion of additional capital in Pharma is the next step towards unlocking value of the company," Piramal said
The company is transforming the Financial Services business into a well-diversified model across both wholesale and retail financing,
The company plans to infuse growth capital into the pharma business, it added
It plans to bring pharma businesses under a subsidiary and raise funds by issuing a minority stake (less than 20 per cent) to potential
This fund raise will not just provide capital for growth, but will also enable value discovery for the pharma business, Piramal Enterprises
The company plans to target both organic and inorganic growth opportunities across businesses it operates in
It is also evaluating re-entry in domestic formulations, it added
Shares of Piramal Enterprises closed at Rs 1419.35 per scrip on the BSE, up 6.09 per cent from the previous close.