Piramal Enterprises : Announces Consolidated Results for Q2 & H1 FY2021

PRESS RELEASE

Piramal Enterprises Limited Announces Consolidated Results for Q2 & H1 FY2021

• Resilient Performance despite a Challenging Business Environment Globally
• Net profit increased by 14% YoY to INR 628 Cr for Q2 FY21 and by 12% YoY to INR 1,124 Cr for H1 FY21
• Strengthened Balance Sheet and improved Liquidity position:
• • Raised Long-Term Borrowings of ~INR 11,500 Cr. during H1 FY2021
  • Received Growth Capital of INR 3,523.40 Cr. from The Carlyle Group in Piramal Pharma

Mumbai, India | October 28, 2020: Piramal Enterprises Limited ('PEL', NSE: PEL, BSE: 500302, 912460) today announced its consolidated results for the Second Quarter (Q2) and Half Year (H1) ended September 30, 2020.

Consolidated Financial Highlights

• Balance Sheet:
• • Shareholders' Equity increased by 28% to INR 34,739 Cr.* since Mar 19
  • 39% reduction in Net Debt by nearly INR 22,000 Cr.* since Mar 2019
  • Net Debt-to-Equity of below 1x times* at entity-level

*Post Pharma deal closed in October 2020

• Inflows / Borrowings:
• • Total inflows of ~INR 42,800 Cr. since April 2019, through equity and borrowing transactions
  • • Raised long-term borrowings of ~INR 11,500 Cr. during H1 FY2021
  • Reduction in CPs to INR 2,100 Cr. as of Sep 2020 from INR 18,017 Cr. as of Sep 2018
• P&L:
• • Revenue for Q2 FY21 increased by 1% YoY to INR 3,302 Cr.
  • Net Profit for Q2 FY21 increased by 14% YoY to INR 628 Cr.
  • Net Profit for H1 FY21 grew by 12% YoY to INR 1,124 Cr.

Mr. Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, "We have delivered a resilient performance with net profit of INR 1,124 Crore for H1 FY21, despite adverse global environment. Continuing to focus on strengthening our balance sheet, over the past year, we brought in INR 18,000 Cr of capital and reduced our net debt-to-equityratio to below 1x.

In Financial Services, we saw early signs of recovery across the key sectors that we lend to. Progressing on the stated strategy of diversifying the loan book, we will be launching our multi-product retail lending platform in November 2020.

The Pharma Business recorded a healthy improvement in both revenue growth and profitability. It also completed the 20% growth investment by The Carlyle Group - which is an affirmation of the robustness of the business model and consistency in performance. Both businesses are now at an inflection point, where we see a good runway for strong performances in the mid to long-term."

				Key Business Highlights
		Financial Services					Pharma
	 In line with our Strategy to diversify our book,		 Closed fund raising deal with The Carlyle
		launching the multi-product Retail Lending		Group
		business in Nov-2020					- Deal values our Pharma business at an
	 Early trends indicate better performance of			Enterprise Value of USD 2.7 - 3.1 Bn.
		- Received INR 3523.40 Cr. as proceed
		developer clients than assumed under stressed			from Pharma Fund raise.
		scenario for creating provisions
				 Revenue of INR 1,441 Cr. (+9% YoY) with
	 Continue to increase granularity of our			EBITDA margins of 23% for Q2FY2021
		wholesale loan book.					- CDMO Revenue up 20% YoY
		- Exposure to only one account at >15% of		- India Consumer Products up 25% YoY
		the net worth of Financial Services
	 Conservative provisions of INR 3,037 Cr. as of		 Other Highlights
		- CDMO order book witnessing healthy
		Sep 2020, equivalent to 237% of GNPAs and			growth
		5.9% of overall loan book
						- India Consumer Products business
	 Capital Adequacy Ratio at 34% (vs. 22% as of			launched 15 products and 38 SKUs
			during the year
		March 2019)
							- Complex Hospital Generics now seeing
									recovery
								- Cleared 4 regulatory inspections
		Business-wise Revenue Performance					(INR Crores or as stated)
				Quarter II ended			Half year ended
		Net Sales break-up
			30/9/20	30/9/19		% Change		% Sales	30/9/20	30/9/19	% Change		% Sales
	Financial Services	1,861	1,954		-5%	56%	3,760	3,968	-5%		60%
	Pharma	1,441	1,317		9%	44%		2,489	-		40%
		2,479
	Pharma CDMO	866	724		20%	26%		1,373	8%		24%
		1,480
	Complex Hospital Generics	438	477		-8%	13%		891	-14%		12%
		763
	India Consumer Products	140	112		25%	4%	244	222	10%		4%
		Total	3,302	3,271		1%			6,239	6,457	-3%

	Consolidated Financial Performance											(INR Crores or as stated)
	Particulars				Quarter II ended					Half year Ended
			30-Sep-20			30-Sep-19			% Change			30-Sep-20			30-Sep-19			% Change
	Net Sales			3,302			3,271			1%			6,239			6,457				-3%
Non-operating other income		38		46			-18%			103		110				-7%
	Total income			3,339			3,316			1%			6,342			6,568				-3%
Other Operating Expenses		1,278		1,188			8%			2,369		2,363				0%
Expected Credit loss		24		-107						75		-152
	OPBIDTA			2,038			2,236			-9%			3,898			4,357				-11%
Interest Expenses		1,156		1,337			-14%			2,260		2,665				-15%
Depreciation		139		128			9%			274		250				10%
	Profit / (Loss) before tax & exceptional items			742			770			-4%			1,364			1,441				-5%
Exceptional items (Expenses)/Income		39		0						39		0
Income tax
Current Tax and Deferred Tax		204		258			-21%			365		474				-23%
DTA and MAT Credit written off		0		0						0		0
	Profit/(Loss) after tax (before MI & Prior Period items)			578			512			13%			1,039			968				7%
Minority interest		0		0						0		0
Share of Associates		50		96			-48%			85		169				-50%
	Net Profit/(Loss) after Tax from continuing operations			628			608			3%			1,124			1,137				-1%
Profit / (Loss) from Discontinued operations		0		-57						0		-137
	Net Profit after Tax			628			551			14%			1,124			1,000				12%

Note: 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 Piramal Enterprises Ltd:

Piramal Enterprises Limited (PEL), a publicly listed company in India, has diversified business interests in Financial Services and Pharmaceuticals. PEL's consolidated revenues were ~US$1.7 billion in FY2020, with ~34% of revenues generated from outside India.

In Financial Services, the Company offers a wide range of financial products and solutions, with exposure across both wholesale and retail financing. The wholesale lending business provides financing to real estate developers, as well as corporate clients in non-real estate sectors. Within retail lending, the Company offers housing loans to individual customers and is building a multi- product retail lending platform. India Resurgence Fund (IndiaRF), the distressed asset investing platform in partnership with Bain Capital Credit, invests in equity and/or debt across non-real estate sectors. The Company has long-standing partnerships with leading institutional investors that include - CPPIB, APG, Bain Capital Credit, CDPQ, and Ivanhoé Cambridge. PEL also has equity investments in the Shriram Group, a leading financial conglomerate in India.

Piramal Pharma Limited (PPL), a subsidiary of PEL, offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 14 global facilities and a global distribution network in over 100 countries. PPL includes an integrated contract development and manufacturing (CDMO) business, Complex hospital generics business, and India Consumer Products business, selling over-the-counter products in India. In addition, it has a joint venture with Allergan, a leader in ophthalmology in the Indian formulations market. In October 2020, PPL received 20% strategic growth investment from the Carlyle Group.

For more information visit:www.piramal.com,Facebook,Twitter,LinkedIn

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