Pharmabiz
 

Piramal Enterprises net surges by 36% in Q1 to Rs.231 crore

Our Bureau, MumbaiMonday, August 1, 2016, 16:00 Hrs  [IST]

Piramal Enterprises, a Rs.6,550 crore plus well diversified entity engaged in segments like pharmaceuticals, financial services and information management, has posted impressive financial performance during the first quarter ended June 2016 with improved top-line performance, lower R&D expenses and higher share of income from associates. Its consolidated net profit increased by 36.3 per cent to Rs.230.93 crore from Rs.169.43 crore in the corresponding period of last year. Its EBDITA doubled to Rs.691.16 crore from Rs.345.58 crore. With significant growth profit level, EPS moved up to Rs.13.38 from Rs.9.82 in the last period.

Piramal's consolidated gross sales increased by 26.7 per cent to Rs.1,761 crore from Rs.1,390 crore. Its pharmaceutical segment sales increased by 4.9 per cent to Rs.872.18 crore from Rs.831.40 crore in the similar quarter of last year, contributing 49.1 per cent to its gross revenues. The revenues from financial services as well as information management worked out to 35.7 per cent and 15.2 per cent in total revenues and touched to Rs.634.76 crore and Rs.269.28 crore respectively. R&D expenditure declined by 37 per cent to Rs.24 crore from Rs.38 crore.

Ajay Piramal, chairman, said, “We have been consistently delivering improved top-line and bottom-line performances since last many quarters. The company again reported a robust revenue and profitability growth for Q1 FY2017. Our revenues were 27 per cent higher at Rs.1,776 crore during the quarter and net profit were 36 per cent higher at Rs.231 crore during the quarter. All our businesses are moving ahead towards delivering on their long term strategic plans. We look forward to grow all our businesses both organically and through acquisitions, with a clear objective of consistently creating long term value for all our stakeholders.”

Its revenues from pharma solutions remained flat at Rs.575 crore due to lumpy nature of business. Mahad plant cleared its first ever US FDA audit without any observation. Revenues from critical care business were at Rs.195 crore, broadly in line with corresponding quarter of the previous year. The company is strengthen its presence and expand market share in UK by winning more tenders in its various geographies. The business also won first public tender in Spain. The company renewed major Group Purchase Organization contract in US for Isoflurane with over 30 per cent price increase. It continue to explore inorganic opportunities to expand product portfolio. Two development projects at overseas sites have been successfully validated and scaled up for commercialization from next year.

The sales from consumer products business grew by 31 per cent to Rs.80 crore. Key drivers include successful integration for Little's & MSD brands acquired in FY2016 and expansion of their coverage, increased distribution of current brands and sound acceptance of new launches in the market. The company is acquiring 4 brands viz., ferradol, neko, sloan's and waterbury's compound, from Pfizer for Rs.110 crore. It also launched a new extension in i-range portfolio – i-pill daily, a regular contraceptive pill and extensions of polycrol and tetmosol.

 
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