Piramal Enterprises, a well diversified entity with 58 per cent revenue from pharmaceuticals, has posted consolidated net sales of Rs.1,463 crore during the first quarter ended June 2015 as against Rs.1,168 crore in the similar period of last year, a growth of 25.3 per cent. Its EBDITA moved up by 64.5 per cent to Rs.421.78 crore from Rs.256.43 crore. However, its net profit declined to Rs.203 crore from Rs.2,896 crore basically due to gain of Rs.3,036 crore from divestment of investment in Vodafone and other items in the last period. Its R&D expenditure declined sharply by 62.8 per cent to Rs.38.28 crore from Rs.102.95 crore. Its foreign exchange gain amounted to Rs.70 crore as against Rs.29 crore in the last period.
Its sales of pharmaceutical manufacturing and services grew by 16 per cent to Rs.857 crore from Rs.739 crore and pharmaceutical contribution worked out to 58.1 per cent of total net consolidated sales. The sales of pharma solutions grew by 27 per cent to Rs.567 crore on account of growth in its formulation business. The company has seen significant traction at its Coldstream site, post its acquisition. The facility has its order book already running full and detailed assessment for capacity expansion is underway. The company also commenced operations at the newly expanded capacity under its discovery services business and completed the capacity expansion at Grangemouth.
The sales of critical care business reached at Rs.191 crore, broadly in line with corresponding quarter of the previous year. The company continue to work towards entering new markets and increasing its share in existing markets. It has maintained its cost leadership and initiatives are underway towards further optimization. Its revenues from consumer products improved by 9 per cent to Rs.93 crore. Saridon, i-pill and Lacto continue to maintain their leadership positioning. QuikKool became a respected brand in mouth ulcer category and Caladryl has doubled its distribution in just less than a year.
Its revenues from financial services including strategic investments jumped by 69.3 per cent to Rs.369 crore from Rs.218 crore and contributed 25 per cent to its total sales. The sales of information management improved by 10.2 per cent to Rs.248 crore from Rs.225 crore. This division contributed 16.8 per cent to its total consolidated net sales.
Ajay Piramal, chairman, said, “Post we crossed the inflection point in our profitability during the last fiscal year, we have continued our momentum of delivering significant bottom-line performance during the quarter. Our approach of constantly thinking ahead and efficiently allocating capital is delivering good results. Our financial Services segment, where we have been allocating a large portion of our capital over the last few years, is consistently delivering robust performance. Apart from significantly scaling up or our Real Estate Financial Services platform we entered into two large special situation transactions. Our pharma solutions business witnessed industry leading growth on back of its end-to-end play, value assertive acquisition and capacity expansions. All our businesses continue to focus on executing their well-defined growth strategy. As an organisation, w remain committed to consistently create long term value for our shareholders.”
Piramal Enterprises has invested Rs.1.07 crore for a minority stake in Health SuperHiway Pvt Ltd, a healthcare analytics company. The company has committed to invest an additional amount of Rs.44.20 crore subject to achievement of certain milelstones by HealthHiway. Upon the second tranche of investment, the company will control a majority sake in the business, on a fully diluted basis.
The company's US based subsidiary, Decision Resources Inc., has acquired 100 per cent stake in Healthcare Business Insights LLC in May 2015. The consideration for the acquisition comprises an upfront payment of US$ 29.96 million (Rs.191.59 crore) subject to working capital adjustment and contingent consideration based on achievement of revenue and EBITDA payable over the next year.