Piramal Enterprises, a Rs.5000 crore plus Mumbai based diversified company, has posted satisfactory financial performance during the third quarter ended December 2015. Its consolidated net profit increased by 29.3 per cent to Rs.322 crore from Rs.249 crore in the same quarter of last year. EBIDTA has taken quantum jump of 79 per cent and went up to Rs.659 crore from Rs.368 crore. Its consolidated net sales moved up by 33.4 per cent to Rs.1,848 croer from Rs.1,385 crore. EPS improved to Rs.18.64 from Rs.14.43 in the last period.
R&D expenditure declined by 33 per cent to Rs.31 crore from Rs.47 crore in the last period. However, interest expenditure went up sharply by 247 per cent to Rs.250 crore from Rs.101 crore mainly due to increase in debt for making investments under financial services segment. The company incurred exceptional loss of Rs.15 crore in third quarter of FY2016. In last year, the exceptional gain of Rs.35 crore was on account of write-back from scaling down the R&D activities in NCE research.
Its pharmaceutical manufacturing and services sales increased by 15.2 per cent to Rs.925 crore from Rs.803 crore. Pharma sales contributed almost 50 per cent to its total sales. Its income from financial services including strategic investments increased by 132 per cent to Rs.508 crore from Rs.219 crore and that from information management increased by 13.3 per cent to Rs.427 crore from Rs.377 crore. Financial services income worked out to 27 per cent of its total sales and information management income contributed 23 per cent to its total sales. The company is earning nearly 63 per cent of its income from foreign currency.
Revenues from Pharma Solutons business grew by 20 per cent to Rs.587 crore in third quarter largely driven by higher sales from API business in India & North America and contribution from its recent acquisition of Coldstream facility. The sales from Critical Care business grew by 9 per cent to Rs.232 crore primarily on account of increasing acccess to new markets and growth in market share across geographies. It significantly increased its market share in UK with expansino in Scotland, Wales and London region. The company entered Malaysia during the quarter under review. It entered a co-promotion agreement with Cumberland, a specialty pharma company ocused on hospital acute care and gastroenterology and officially launched co-promotion of two of Cumberland's branded hospital products. The sales of consumer products business grew by 15 per cent to Rs.97 crore.
Ajay Piramal, chairman, said, “I am very happy to announce that our teams have continued the growth momentum and have delivered an outstanding set of results for Q3 FY2016. Most importantly, in an environment of muted earnings growth across sectors over last few yeaRs.our performance has been consistently improving in all three segments over last 5 yeaRs.We are continuing to execute our long term strategy. I feel more confident about our ability to consistently deliver such results as we go forward.”
“As an organisation, we remain committed towards sustainably creating long term value for our shareholders,” he added.
For the nine months period ended December 2015, Piramal's consolidated net sales increased by 27.8 per cent to Rs 4,844 crore from Rs.3,791 crore in the same period of last year. Its net profit, however declined sharply due to extraordinary gain from sale of investment in Vodafone India in last period, to Rs.770 crore from Rs.2,755 crore.
Its sales from pharmaceuticals manufacturing and service for the nine months increased by 12.7 per cent to Rs.2,622 crore from Rs.2,326 crore in the corresponding period of last year. Pharma segment contributed 53.8 per cent to its total sales. Financial services income went up by 94 per cent to Rs.1,305 crore and that from information management moved up by 15 per cent to Rs.949 crore.