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Piramal Enterprises Limited Announces Consolidated Results for Q2 and H1 FY2022
· Completed the DHFL Acquisition; Total AUM up 42% QoQ to INR 66,986 Cr. post the merger with PCHFL
· Announced Demerger of Pharma and Simplification of Corporate Structure
· Resilient performance in H1 FY22 despite COVID-19; Normalized Net Profit at INR 1,090 Cr.
Mumbai, India | November 11, 2021: Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302) today announced its consolidated results for the Second Quarter (Q2) and Half Year (H1) FY2022 ended 30th September 2021.
Consolidated Highlights
Note: P&L Performance for Q2 and H1 FY22 does not include the DHFL acquisition
§ Completed the Acquisition of DHFL and its merger with PCHFL in Sep-2021:
- Completed reverse merger of PCHFL with DHFL; merged entity named PCHFL
- Creates one of the largest HFCs in India, focused on affordable housing
- Pan-India platform with 301 branches across 24 states / UTs and ~1 million customers
- Retail AUM up 4.3 times QoQ to INR 22,273 Cr
§ Demerger of Pharma and Corporate Structure Simplification approved by the Board in Oct-2021:
- To create two sector-focused listed entities in Financial Services and Pharmaceuticals
- The pharmaceuticals business will get vertically demerged from Piramal Enterprises Limited and consolidated under Piramal Pharma Limited (‘PPL’)
- PHL Fininvest, the NBFC entity, will be amalgamated with PEL to create a large listed NBFC
§ P&L Performance:
- Q2 FY22 revenues at INR 3,106 Cr.; H1 FY22 revenues at INR 6,014 Cr.
Q2 FY22 Normalised Net Profit at INR 541 Cr.; H1 FY22 Normalized Net Profit at INR 1,090 Cr.
Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “The second quarter of FY22 was transformational for our company and has significantly strengthened the foundation to support future growth. We successfully completed the acquisition and merger of DHFL and the total AUM has grown 42% QoQ to INR 66,986 Cr. The acquisition has enabled us to diversify our loan book and scale up our retail lending portfolio through multi-product offerings that cater to the needs of the underserved customers of our country. Leveraging our data, analytics and technology capabilities, we aim to be a dominant player in the growing Tier 2-3 cities and be the lender of choice for budget-conscious customers.
Further, during the quarter, the Board of Directors approved the demerger of our pharmaceuticals business and simplification of the corporate structure. It will result in the creation of two separate listed entities in financial services and pharmaceuticals – thereby unlocking value for our shareholders. This is in line with our stated commitment as we continue to expand organically and inorganically across both the business segments. Our balance sheet strength and uniqueness of our business models sets us apart, enabling us to create long-term value for our stakeholders.”
Key Business Highlights
Financial Services
§ Overall AUM increased 42% QoQ to INR 66,986 Cr. post the DHFL merger
- Retail loan book increased 4.3x QoQ to INR 22,273 Cr. as of Sep-2021
- Share of retail loans increased from 11% in Jun-2021 to 33% in Sep-2021
§ DHFL acquisition further improved ALM
- Acquisition partly funded by 10-year NCDs worth INR 19,550 Cr. at 6.75% p.a.
§ Improvement in asset quality metrics post the DHFL acquisition
- Gross NPA ratio declined 140 bps QoQ at 2.9%
- Net NPA ratio also fell 75 bps QoQ to 1.5%
Pharma
§ Revenue grew by 20% YoY to INR 2,983 Cr. for H1 FY2022:
- India Consumer Healthcare Revenues were up 54% YoY
- Complex Hospital Generics Revenues were up 26% YoY
- CDMO Revenues were up 11% YoY
§ Investing organically and inorganically across all our Pharma businesses in H1 FY22:
- Completed acquisition of Hemmo Pharmaceuticals for INR 775 Cr.
- Riverview facility expansion of US$ 35 Mn commenced
- Aurora facility expansion of $22 Mn near completion
Key Business Highlights
Consolidated Highlights
Consolidated Highlights