Piramal Enterprises Limited Announces Consolidated Results for Q4 and FY2022
Mumbai, India | May 27, 2022: Piramal Enterprises Limited (‘PEL’, NSE: PEL, BSE: 500302) today announced its consolidated results for the Fourth Quarter (Q4)and Full Year (12M) FY2022 ended 31stMarch 2022.
| Consolidated Highlights |
| § Overall Performance:– Q4 FY22 revenues growth of 22% YoY to INR 4,163 Cr.; FY22 revenues at INR 13,993 Cr.- Q4 FY22Net Profit of INR 151 Cr.; FY22 Net Profit at INR 1,999 Cr.o Reported net profit factors in additional provisioning of INR 822 Cr. and interest reversal of INR 215 Cr. (totalling INR 1,037 Cr.)in Q4 FY22§ Dividend:– The Board has recommended a dividend of INR 33 per share, subject to shareholders’ approval at the AGM;the total dividend pay-out would be INR 788 Crores (Dividend Pay-out Ratio of 39%)§ Financial Services (FS):– DHFL acquisition completed in FY 2022; branches integrated and re-activated- Retail loan disbursements up 100% QoQ in Q4 FY22 toINR 1,480 Cr.- YoY decline in GNPAby 70 bps to 3.4% and NNPA by 50 bps 1.6%- Created additional provisions for wholesale non-RE assets in Stage-2; overall provisions equivalent to5.7% of AUM- Over the next 5 years, i.e. by end-FY2027, aspire to achieve:o Retail-Wholesale mix of 2/3rd Retail and 1/3rd wholesaleo Double the AUM of the FS lending businesso Retail disbursement growth at 40-50% (5-year CAGR) § Pharma Business:– Acquired additional stake in Yapan Bio in April 2022, taking the overall stake to 33% and broadening our services in the biologics space- Aurora plant commenced operations post $23 Mn API expansion- Launched new production block for Oral Solid Dosage forms at Pithampur in May 2022- Announced $74 Mn expansion for Antibody Drug Conjugates and API in Grangemouth and Morpeth- Witnessed healthy growth in Development order book- Executed multiple contract extensions with major GPOs in the US- Launched 40 new products in the India Consumer Healthcare business in FY22- Littles crossed Rs. 100 Cr. and Tetmosol crossed Rs. 50 Cr. in FY22 revenues |
Ajay Piramal, Chairman, Piramal Enterprises Ltd.said, “We have delivered a resilient performance in Q4 and FY22 across financial services and pharmaceuticals, against the backdrop of the pandemic and macro-economic headwinds. In financial services, we completed the integration with DHFL and achieved 100% Q-on-Q growth in retail loan disbursements in Q4 of FY22. We have re-activated almost all the branches and not only retained over 3,000 employees of the DHFL, but also created over 3,000 new jobs in the merged entity across India. We will continue to make requisite investments in talent and technology, to strengthen our ability to tap the latent business opportunities in the Bharat market. Post the DHFL acquisition, we will now leverage our sizable retail lending platform to double our AUM over the next 5 years, thereby significantly improving our mix towards retail.
During the quarter, we further strengthened our balance sheet by making additional provisions towards Stage 2 assets. We also continue to retain the extraordinary provisions made in March 2020 towards the pandemic related risks.
In pharmaceuticals, we have been investing organically and inorganically across all our businesses. All our key businesses have a compelling plan for their growth and have continued to deliver against their respective strategic priorities despite challenging macro-environment.We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3 of FY23 and unlock significant value for our stakeholders.”
| Key Business Highlights |
| Financial Services |
| § Significant AUM growth and diversification– AUM increased 33% YoY to INR 65,185 Cr. as of Mar-2022- Share of retail in the overall loan book increased from 12% in Mar-2021 to 36% in Mar-2022- Retail loan book increased 306% YoY to INR 21,552 Cr.§ Retail loan disbursements increased 100% QoQ to INR 1,480 Cr. in Q4 FY22- ~132,000 customers acquired in Q4 FY22- Launched mobile app, with >125k downloads- Disbursement yields continued to improve to 12.5% in Q4 vs. 11.3% in Q1 FY22, driven by shift in product mix of disbursements- On-track to achieve guidance of INR 2,500-3,500 Cr. of disbursements in Q3 FY23 (i.e. 5-7x of pre-merger levels)§ Increasing granularity of the wholesale portfolio:– No exposure is >10% of net worth and 90% of Real Estate book is <7% net worth- ‘Wholesale Lending 2.0’: Calibrated approach, with focus on smaller loans and cash flow-backed lending§ Re-evaluated the wholesale portfolio, to detect any lasting impact of the pandemic or recent stress in the macro economy on our clients– Based on this assessment, we moved some of our non-Real Estate exposures to Stage 2 and thus, we have made additional provisioning and interest reversal totalling INR 1,037 Cr. (incl. additional provisioning of INR 822 Cr. and interest reversal of INR 215 Cr.)- These were high-yield, structured mezzanine loans done under the ‘Holdco’ structure. We have discontinued doing such kind of deals.§ GNPA and NNPA ratios stable QoQ– GNPA ratio at 3.4% and NNPA at 1.6%- Total provisions at INR 3,735 Cr, equivalent to 5.7% of our AUM§ Robust Liability Management– Average cost of borrowings fell 180 bps YoY to 9.1% in Q4 FY22; 79% of borrowings at fixed rate § Adequate capital available for value accretive acquisitions, as well as for organic growth, given capital adequacy ratio of ~21% and net debt-to-equity of 2.7x |
| Pharma |
| § Revenue grew by 16% YoY to INR 6,701 Cr. For FY2022:– India Consumer Healthcare Revenues were up 48% YoY- Complex Hospital Generics Revenues were up 20% YoY- CDMO revenues were up 10% YoY§ Delivered EBITDA of INR 1,206 Cr. for FY22, EBITDA margin at 18% § Investments / capacity expansion in niche capabilities, etc: CDMO:– Acquired additional stake in Yapan Bio to broaden services in biologics space, now 33% ownership- Operations commenced post $23 Mn APIs expansion at the Aurora facility- Launched new production block for Oral Solid Dosage forms at Pithampur in May 2022- Announced $74 Mn expansion for Antibody Drug Conjugates and APIat Grangemouth and Morpeth facilities- Announced expansion for drug substances, including HPAPIs, at Riverview– Witnessing healthy growth in Development Order Book and strong demand for API servicesComplex Hospital Generics:– Executed multiple contract extensions with major GPOs in the US in the Complex Hospital Generics business- Witnessing strong Inhaled Anaesthesia sales in the US- Intrathecal portfolio continued its leadership position in the USIndia Consumer Healthcare:– Strong performance in power brands in the India Consumer Products business- Launched 40 new products in FY22; New products launched since Apr’20 contribute to 15% of sales- Littles crossed Rs. 100 Cr. and Tetmosol crossed Rs. 50 Cr. In FY22 revenues |
Consolidated P&L (In INR Crores, or as stated)
| Particulars | Quarter IV ended | 12M Ended | ||||
| 31-Mar-22 | 31-Mar-21 | % Change | 31-Mar-22 | 31-Mar-21 | % Change | |
| Net Sales | 4,163 | 3,402 | 22% | 13,993 | 12,809 | 9% |
| Non-operating other income | 238 | 164 | 45% | 720 | 364 | 98% |
| Total income | 4,401 | 3,566 | 23% | 14,713 | 13,173 | 12% |
| Other Operating Expenses | 2,169 | 1,701 | 28% | 6,847 | 5,335 | 28% |
| Expected Credit loss | 817 | -77 | – | 696 | 10 | – |
| OPBIDTA | 1,414 | 1,942 | -27% | 7,170 | 7,828 | -8% |
| Interest Expenses | 1,237 | 936 | 32% | 4,480 | 4,209 | 6% |
| Depreciation | 190 | 145 | 31% | 666 | 561 | 19% |
| Profit / (Loss) before tax & exceptional items | -14 | 861 | – | 2,025 | 3,058 | -34% |
| Exceptional items (Expenses)/Income | – | – | – | -168 | 59 | – |
| Current Tax and Deferred Tax | 24 | 218 | -89% | 511 | 785 | -35% |
| DTA reversal / other one-time tax adjustments | – | 1,258 | -100% | – | 1,258 | -100% |
| Profit / (Loss) after tax (before MI & Prior Period items) | -37 | -616 | – | 1,346 | 1,074 | 25% |
| Share of Associates1 | 188 | 106 | 78% | 653 | 338 | 93% |
| Net Profit / (Loss) after Tax | 151 | -510 | – | 1,999 | 1,413 | 41% |
