Piramal Enterprises Q1 net profit slips 9% to Rs 486 cr; revenue up 22%

Piramal Enterprises Ltd on Friday reported an 8.95 per cent decline in consolidated net profit to Rs 485.98 crore for the first quarter ended June 30, impacted by higher expenses.

The company had posted a consolidated net profit of Rs 533.79 crore in the same period last fiscal, Piramal Enterprises Ltd (PEL) said in a regulatory filing.

Its revenue from operations in the first quarter stood at Rs 3,548.37 crore compared to Rs 2,908.68 crore in the year-ago period, it added.

Total expenses in the quarter were higher at Rs 3,252.09 crore against Rs 2,492.97 crore a year ago.

PEL said its pharmaceuticals vertical clocked revenue of Rs 1,485.43 crore, up from Rs 1,362.02 crore in the year-ago quarter.

The financial services segment registered a revenue of Rs 2,062.94 crore against Rs 1,546.66 crore in the first quarter of the last fiscal, the company added.

"In financial services, we achieved significant growth in retail disbursements through our branches as well as by leveraging digital lending capabilities. We remain ahead of our target to achieve disbursement levels of Rs 2,500-3,500 crore by the third quarter of this financial year," PEL Chairman Ajay Piramal said.

In pharmaceuticals, he said the company has been making both organic and inorganic investments across all its businesses.

"We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3 FY23 and unlock significant value for our stakeholders," Piramal said.