Piramal Enterprises, formerly known as Piramal Healthcare Ltd, has posted net loss during the second quarter ended September 2012 on account of acquisition of Decision Resources Group (DRG) and NCE business of Piramal Life Sciences. The net loss amounted to Rs.92 crore as against a net profit of Rs.52 crore in the corresponding period of last year. Its net sales has taken a quantum jump of 74 per cent to Rs.828.58 crore from Rs.477.58 crore. Its operating income declined to Rs.34.45 crore from Rs.57.16 crore and other income by 72 per cent to Rs.28.77 crore from Rs.102.60 crore.
With the acquisition of DRG and NCE business of Piramal Life Sciences, its employees cost went up to Rs.233.61 crore from Rs.114.43 crore, depreciation provision to Rs.56.29 crore from Rs.28.61 crore, R&D expenditure to Rs.83.19 crore from Rs.27.15 crore and other expenditure to Rs.216.46 crore from Rs.141.20 crore. Due to significant higher expenditure and lower other income, its EBDITA declined by 21.5 per cent to Rs.101.96 crore from Rs.129.84 crore in the corresponding period of last year. Further, its interest provision went up to Rs.122.23 crore from Rs.19.63 crore on account of debt of $635 million raised for acquisition of DRG.
The sales of pharmaceutical manufacturing and services increased by 27.9 per cent to Rs.609.11 crore from Rs.476.33 crore. The pharma solutions (CRAMS) business improved by 19.6 per cent to Rs.364.90 crore from Rs.305.10 crore. The revenues from Indian facilities were Rs.191.9 crore as compared to Rs.187.4 crore. Sales from facilities outside India moved up by 47 per cent to Rs.173 crore. Decision Resources Group Inc., reported sales of Rs.172.6 crore for the second quarter of FY'13.
The sales of Piramal Critical Care division improved sharply by 69.8 per cent to Rs.155.5 crore mainly due to increased sales of Sevoflurane across markets. PEL has commenced sales in two countries in EU and on schedule for launch in other major European markets over the next two quarters. OTC and ophthalmology business improved by 18.6 per cent to Rs.67.7 crore.
The income from financial services, including PHL Finance Ltd and INDIAREIT Fund, reached at Rs.54.7 crore during the quarter ended September 2012. The loan book was Rs.812 crore. Its real estate PE firm INDIAREIT raised Mumbai Redevelopement Fund of Rs.400 crore from the domestic investors during the last quarter.
For the first half ended September 2012, its sales increased by 68.6 per cent to Rs.1539 crore from Rs.913 crore in the same period of last year. However, it incurred a net loss of Rs.88 crore as against a net profit of Rs.141.66 crore. Its EBDITA also declined by 16.4 per cent to Rs.237.92 crore from Rs.284.65 crore.