Piramal Enterprises Ltd: Q4 & FY 2019 Annual Results

Manish Mathur April 26, 2019

Jaipur, India, April 26, 2019: Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302) today announced its consolidated results for Full Year and Fourth Quarter ended 31st March 2019.

Financial Highlights

  • Revenue:

Up 23% at INR 3,680 Crores during Q4 FY2019 vs INR 2,991 Crores in Q4 FY2018

Up 24% at INR 13,215 Crores during FY2019 vs INR 10,639 Crores in FY2018

  • Normalised Net Profit*:

Net profit up 25% to INR 470 Crores in Q4 FY2019 vs. INR 375 Crores in Q4 FY2018

Net profit up 25% at INR 1,936 Crores during FY2019 vs INR 1,551 Crores in FY2018

  • Cash Profit:

Up 93% to INR 661 Crores in Q4 FY2019 vs. INR 343 Crores in Q4 FY2018

Up 42% to INR 2,600 Crores in FY2019 vs. INR 1,829 Crores in FY2018

  • The Company has delivered a 7 year Revenue CAGR of 28% and 7 year normalised net profits CAGR of 50%.

 

  • The Company has been delivering 20%+ growth in Revenues and Net Profit, consistently over past 15 quarters.

 

  • The Board recommended dividend of INR 28 per share for FY2019. Dividend pay-out ratio is 29%.

 

Note*: 1) Excluding non-recurring and non-cash accounting charge towards Imaging assets for Q1 FY2019 & non-recurring exceptional items in Q4 FY2019 2) Excluding synergies on account of merger of subsidiaries in financial services segment for Q4 FY2018

Operational Highlights

Financial Services

  • Total Loan Book grew by 34% YoY to INR 56,624 Crores
  • The Financial Services segment recorded an ROE of 19% (considering cash tax and other synergies from the reverse merger)
  • Gross NPA ratio (based on 90 dpd) was at 0.9%, provisioning stood at 1.93% of loan book
  • Wholesale RE (excluding hospitality and Lease rental discounting) exposure has significantly declined from 83% in March 2015 to 63% in March 2019
  • Housing Finance Loan book grew 32% Vs. Q3 FY2019 to INR 5,188 Crores, representing 9% of overall loan book
  • Raised ~INR 16,500 Crores via NCDs and bank loans from Sept’18 to March’19
  • Commercial Paper borrowings reduced by 50% to INR 8,900 Cr since Sept’18
  • Nearly INR 5,400 Crores in the form of cash and several unutilized bank lines

Pharma

  • Pharma revenue grew 11% YoY to INR 1,477 Crores for the quarter and 11% to INR 4,786 Crores for the full year
  • Global Pharma EBITDA grew at 3 year CAGR of 24% to cross INR 1,000 Crores with EBITDA margins increasing to 23% for the year
  • Successfully cleared 44 regulatory inspections (including 2 USFDA) and 163 customer audits during FY2019

Healthcare Insights & Analytics

  • Revenue grew by 16% YoY to INR 270 Crores for Q4 FY2019 and 10% YoY to INR 1,332 Crores for FY2019

Mr. Ajay Piramal, Chairman, Piramal Enterprises Ltd. (PEL) said, “We are pleased to announce that Piramal Enterprises has recorded another year of robust performance across both revenues and profitability. The Company has delivered 24% growth in revenues to INR 13,215 Crores and a 26% growth in profit before tax (before exceptional items) to INR 2,478 Crores for FY 2019. Our loan book has grown by 34% despite volatility in the NBFC sector. We also significantly diversified our borrowings by raising long-term funds of INR 16,500 crores since September 2018. Our differentiated business model in Pharma has enabled sustained revenue growth in spite of the pricing pressures and regulatory concerns that impacted the industry. We remain committed to deliver improved performance year-on-year, strengthen our market leadership and consistently create long-term value for our stakeholders.”

 

Consolidated Financial Performance

 

(in INR Crores or as stated)

Particulars Quarter IV Ended Full year ended
31-Mar-19 31-Mar-18 % Change 31-Mar-19 31-Mar-18 % Change
Net Sales 3,680 2,991 23% 13,215 10,639 24%
Non-operating other income 85 37 133% 313 260 21%
Total income 3,765 3,028 24% 13,528 10,899 24%
Other Operating Expenses 1,738 1,610 8% 6,121 5,479 12%
OPBIDTA 2,027 1,417 43% 7,407 5,419 37%
Interest Expenses 1,316 831 58% 4,410 2,978 48%
Depreciation 135 115 18% 520 477 9%
Profit before tax & exceptional items 576 472 22% 2,478 1,964 26%
Exceptional items Expenses/(Income) 13 – – 466 –
Income tax 224 (3,380) 861 (2,876)
Profit after tax (before MI & Prior Period items) 338 3,852 -91% 1,151 4,840 -76%
Minority interest – – – – – –
Share of Associates1 118 92 28% 319 280 14%
Net Profit after Tax 456 3,944 -88% 1,470 5,120 -71%
Net Profit Margin % 12% 132% – 11% 48%
Normalised Net Profit2 470 375 25% 1,936 1,551 25%
Normalised Net Profit Margin % 13% 13% 15% 15%
Diluted EPS (Rs./share) 22.9 203.4 -89% 73.9 281.7 -74%
Normalised EPS (Rs./share)2 23.6 19.3 22% 97.2 85.4 14%

 

Notes: 1) Income under share of associates primarily includes our share of profits at Shriram Capital and our share of profit under JV with Allergan, as per the new accounting standards;    2) Normalised Net Profit after Tax for FY2019 excludes non-recurring and non-cash accounting charge towards Imaging assets in Q1 FY2019 & exceptional items in  Q4 FY2019

Consolidated Revenues

Consolidated revenues grew by 23% to INR 3,680 Crores for Q4 FY2019 and 24% to INR 13,215 Crores for FY2019. The Company has delivered a strong revenue performance with growth across Financial Services and Pharma businesses. 40% of our FY2019 consolidated revenues were earned in foreign currency.

Normalised Net Profit

The Normalised Net Profit was up 25% to INR 470 Crores in Q4 FY2019 as compared with INR 375 Crores in Q4 FY2018. Normalized net profit was up 25% to INR 1,936 Crores in FY2019 as compared with INR 1,551 Crores in FY2018. The strong growth in profitability was on account of revenue growth across all segments.

Interest Expenses

Interest expenses for Q4 FY2019 were higher primarily on account of the increase in borrowings for growing the lending business.

Share of Associates

Income under share of associates for Q4 FY2019 & FY2019 primarily includes our share in the profits at Shriram Capital and under JV with Allergan.

 

Business-Wise Revenue Performance

 

(in INR Crores or as stated)

Net Sales break-up Quarter IV ended % Sales

for Q4

 Full year ended % Sales for FY19
31-Mar-19 31-Mar-18 % Change 31-Mar-19 31-Mar-18 % Change
Financial Services 1,933 1,395 39% 53% 7,063 4,981 42% 54%
Pharma 1,477 1,330 11% 40% 4,786 4,322 11% 36%
Global Pharma 1,388 1,245 12%   4,452 3,976 12%  
India Consumer Products 89 85 4%   334 346 -3%  
Healthcare Insight and Analytics 270 234 16% 7% 1,332 1,209 10% 10%
Others 0 32 – – 34 127 – –
Total 3,680 2,991 23% 100% 13,215 10,639 24% 100%

 

Note: 1) Pharma Includes Global Pharma and Consumer product division

2) Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to current period.

 

To download the results presentation and for further information on our financials, please visit our website: www.piramal.com

About Manish Mathur