Business

Piramal slips into red with ₹1,703 cr. loss

Piramal Enterprises Ltd. reported a consolidated net loss of ₹1,703 crore for the fourth quarter ended Match 31, 2020 compared with a net profit of ₹455 crore in the year-earlier period. Normalised net profit through one-off adjustments rose 40% to ₹807 crore.

Revenue declined 2% year-on-year to ₹3,341 crore.

For the financial year ended March 31, 2020, the company reported a revenue ₹13,068 crore, a growth of 10%. Net profit stood at ₹21 crore. Normalised net profit grew 22% year-on-year to ₹2,615 crore.

The board has recommended a dividend of ₹14 per share.

Ajay Piramal, chairman, Piramal Enterprises Ltd., said, “The last few quarters have been challenging for the Indian economy. The situation has further worsened due to the COVID-19 pandemic, with a subsequent economic recovery likely to be long-drawn. To navigate through such an environment, we have significantly strengthened and deleveraged our balance sheet through multiple initiatives to raise capital.”

“Our pharma business continues to be operational despite COVID 19 lockdowns and has delivered a healthy revenue growth of 13% YoY to ₹5,419 crore and an EBITDA margin of 26% for FY20,” he said.

“We have consciously shrunk our wholesale loan book by 12% and more importantly, reduced our large single borrower exposure by ₹4,200 crore over the past year,” he added.

“Further, given the uncertain macro environment, we have created ₹1,903 crore of additional provision to mitigate potential contingencies in our financial services business,” he said.

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Printable version | Jul 9, 2020 4:23:29 AM | https://www.thehindu.com/business/piramal-slips-into-red-with-1703-cr-loss/article31560604.ece

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