Piramal drops nearly 10% on weak Q4 earnings

Shares of Piramal Enterprises tumbled 9.68% to Rs 842 on the BSE on Tuesday after the corporate reported a internet lack of Rs 1,703 crore within the March quarter of the monetary yr 2019-20 over the coronavirus pandemic.

The inventory opened at Rs 866 and touched an intraday excessive and low of Rs 889.95 and Rs 842 respectively within the session to this point. It quoted a 52-week excessive of Rs 2,256.49 and a 52-week low of Rs 606.85.

At 10:43am, the inventory was down 8.13% at Rs 856.45 within the S&P BSE Sensex. The inventory hit its 52-week low of Rs 608 on March 24, 2020.

Piramal Enterprises on Monday reported a consolidated internet lack of Rs 1,702.59 crore for the fourth quarter ended March 2020 because of the influence of the coronavirus pandemic. The firm had posted a internet revenue of Rs 454.63 crore in January-March quarter a yr in the past, Piramal Enterprises stated in a BSE submitting.

Its whole income from operations dropped 1.98% to Rs 3,341 crore throughout the quarter below overview as in contrast with Rs 3,408.52 crore within the corresponding quarter of the earlier yr.

“The Group has estimated and recognised an additional expected credit loss of Rs 1,903 crore on certain financial assets, on account of the anticipated effect of the global health pandemic,” the corporate stated.

“As a result of the uncertainties resulting from COVID-19, the impact of this pandemic may be different from those estimated as on the date of approval of these financial results and the Group will continue to monitor any changes to the future economic conditions,” it added.

Its whole bills throughout the quarter stood at Rs 4,876.77 crore.

“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,” Piramal Enterprises’ chairperson Ajay Piramal stated on the outcomes.

“To navigate through such an environment, we have significantly strengthened and deleveraged our balance sheet through multiple initiatives to raise capital.”

During the quarter, Piramal Enterprises’ income from prescribed drugs stood at Rs 1,622.58 crore as towards Rs 1,475.76 within the corresponding quarter a yr in the past.

Revenue from monetary companies section stood at Rs 1,718.42 crore throughout the quarter as towards Rs 1,932.76 crore within the year-ago interval.

The firm had on January 17, 2020, accepted divestment of its total stake in healthcare insights and analytics enterprise, by means of its wholly-owned subsidiaries, to Clarivate Analytics Plc and its subsidiaries for an mixture consideration of roughly $950 million.

“USD 900 million was received, on the closing date and the balance USD 50 million would be received at the end of twelve months from the closing of the transaction.

“Consequently, profit before tax and tax expenses relating to the Healthcare Insights and Analytics business have been disclosed separately as discontinued operations as part of the above results,” the corporate stated.

For the fiscal yr 2019-20, Piramal Enterprises internet revenue stood at Rs 21.14 crore. It was at Rs 1,464.09 crore within the earlier yr. Its whole income from operations within the fiscal stood at Rs 13,068.29 crore. It was at Rs 11,882.59 crore in 2018-19.

According to the corporate, it transferred sure monetary property to wholly-owned subsidiaries, therefore “the results for year ended March 31, 2020, are not comparable with the results of the earlier periods presented.”

“Our pharma business continues to be operational despite COVID -19 lockdowns and has delivered a healthy revenue growth of 13 per cent YoY to INR 5,419 crore and an EBITDA margin of 26 per cent for FY20,” Piramal stated.

The income from monetary companies enterprise was at Rs 7,649.42 crore in FY20.

In a separate submitting, the corporate knowledgeable BSE that its board has really helpful a dividend of Rs 14 per fairness share.

“Keeping in mind the global environment of heightened uncertainty caused by the COVID-19 pandemic on one hand and on the other, the recent sale of our DRG business as well as the interest of the minority shareholders, the board has recommended a dividend of INR 14 per share for the approval of the shareholders in the AGM,” the corporate stated.

(With company inputs)