Piramal Enterprises : Announces Consolidated Results for Q4 & FY2021

PRESS RELEASE

Piramal Enterprises Limited Announces Consolidated Results for Q4 & FY2021

• Delivered resilient performance in FY 2021 despite the unprecedented global business environment

Mumbai, India | May 13, 2021: Piramal Enterprises Limited ('PEL', NSE: PEL, BSE: 500302, 912460) today announced its consolidated results for the Fourth Quarter (Q4) and Full Year FY2021 ended 31st March 2021.

Consolidated Financial Highlights

Delivered resilient performance in FY 2021, while executing on its earlier stated transformation plan, despite the unprecedented global business environment

• Balance Sheet:
• • Shareholders' Equity increased by 29% to INR 35,139 Cr. in the last 2 years
  • 45% reduction in Net Debt by INR 24,968 Cr. in the last 2 years
  • Raised >INR 51,000 Cr. of long-term funds in the last 2 years
  • PEL Net Debt-to-Equity of 0.9x times
• P&L:
• • FY 2021 performance:
  • • Revenue at INR 12,809 Cr., broadly stable year over year
    • Significant Increase in Net Profit of INR 1,413 Cr. versus INR 21 Cr. in FY2020
    • Normalized Net Profit of INR 2,627 Cr.; in line with INR 2,615 Cr. in FY2020
  • Q4 FY2021 performance:
  • • Revenue marginally grew to INR 3,402 Cr. versus INR 3,341 Cr. in Q4 FY2020
    • Normalized Net Profit of INR 748 Cr. versus INR 807 Cr. in Q4 FY2020
• Proposed DHFL Acquisition:
• • The resolution plan received approvals from the RBI in Feb-2021 and Competition Commission of India (CCI) in Apr-2021
• Dividend:
• • The Board has recommended a dividend of INR 33 per share for the approval of the Shareholders in the AGM. The total dividend payout on this account would be INR 788 Crores.

Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, "PEL has delivered steady performance with revenues of INR 12,809 Crores and net profit of INR 1,413 Crores for FY21, reflecting strong resilience during a phase of prolonged macro-economicchallenges.

Over the last two years, we have significantly strengthened our balance sheet and continue to transform our Financial Services business model from largely wholesale-led to a more diversified one across wholesale and retail financing. This transformation will also be augmented by our impending inorganic initiative with DHFL, that is currently undergoing regulatory process.

Pursuant to the capital raise during the year in our Pharma business, we have accelerated investments in both organic and inorganic growth initiatives.

In the last one year, we have also made further progress towards creating two separate listed entities. I am confident that these businesses will emerge as two strong companies, each with a long runway for growth."

Key Business Highlights

	Financial Services (FS)		Pharma
 Continued organic build-up of multi-		 Revenue grew by 19% YoY to INR 1,923 Cr. for
	product retail lending platform, since its		Q4 FY2021:
	launch in Nov-2020		- CDMO Revenues were up 23% YoY
	- Increased product suite from		- India Consumer Healthcare Revenues were
	2 to 7 products in FY2021		up 55% YoY
	- Healthy traction witnessed across
	product categories in terms of		 Revenue grew by 7% to INR 5,776 Cr. and
	disbursements during Q4 FY2021		Delivered EBITDA of INR 1,283 Cr. in FY21:
 Proposed DHFL Acquisition:		- CDMO Revenues were up 15%
	- India Consumer Healthcare Revenues were
	- PCHFL's resolution plan received		up 20%
	approvals from the RBI in Feb-2021 and
		- Complex Hospital Generics impacted by
	Competition Commission of India (CCI)
		low demand due to Covid-19 effect on
	in Apr-2021
		surgeries globally and other
 Made further progress on rationalizing the		hospitalizations
	wholesale loan book and making it more		 Invested recently raised capital in both
	granular
		organic and inorganic growth initiatives:
	- No exposures were >15% of net worth
		- Announced acquisition of Hemmo
	of the FS business as of March 2021
		Pharmaceuticals for INR 775 Cr.
	Despite reduction in wholesale loan book in		- Completed acquisition of 49% remaining
		stake in Convergence Chemicals
	FY2021, we continue to maintain
		- Announced US$ 32 Mn expansion of
	conservative provisions at 6.3% of loan
		Riverview, Michigan facility
	book (INR 2,797 Cr.) to manage any
	contingencies arising from the second wave		- Acquired Solid Oral Dosage facility in
	of COVID-19		Sellersville from G&W Laboratories
	- Provisions against the wholesale book		- India Consumer Healthcare business
	is much higher at 6.8%		launched 15+ products and 35+ SKUs
 'Best-in-class' capital adequacy ratio of		 Other Highlights:
	37% (vs. 22% in March 2019)		- CDMO strong order book reinforced by
			over 50 new customers in FY21
			- Established e-commerce as growth
			vertical, delivering 3x growth in FY21
			- Cleared 29 regulatory inspections and 99
			customer audits during the year

Business-wise Revenue Performance										(INR Crores or as stated)
Net Sales break-up			Quarter IV ended				% Sales for				12M ended					% Sales for
										Q4 FY2021											FY2021
	31-Mar-21	31-Mar-20		% Change		31-Mar-21	31-Mar-20		% Change
Financial Services	1,478		1,718			-14%		43%		7,033		7,649		-8%		55%
Pharma	1,923		1,623			19%		57%		5,776		5,419		7%		45%
Pharma CDMO		1,290			1,048			23%			38%			3,616			3,154			15%			28%
Complex Hospital Generics		507			500			1%			15%			1,669			1,853			-10%			13%
India Consumer Healthcare		127			82			55%			4%			501			418			20%			4%
Total	3,402		3,341			2%		100%		12,809		13,068		-2%		100%
Note: Pharma revenue includes foreign exchange gains/losses

	Consolidated Financial Performance												(INR Crores or as stated)
	Particulars				Quarter IV ended						12M ended
			31-Mar-21			31-Mar-20			% Change			31-Mar-21			31-Mar-20			% Change
	Net Sales			3,402				3,341			2%			12,809			13,068				-2%
Non-operating other income		164			240			-31%			364		491				-26%
	Total income			3,566				3,581			0%			13,173			13,559				-3%
Other Operating Expenses		1,701			1,420			20%			5,335		4,926				8%
Impairment on financial assets		-77			2,019			-			10		1,875				-99%
	OPBIDTA			1,942				142			-			7,828			6,758				16%
Interest Expenses		936			1,295			-28%			4,209		5,321				-21%
Depreciation		145			143			2%			561		520				8%
	Profit / (Loss) before tax & exceptional items			861				-1,296			-			3,058			918				233%
Exceptional items (Expenses)/Income		0			0			-			59		0				-
Income tax - Current tax		218			-498			-			785		203				287%
DTA reversal / other one-time tax adjustments		1,258			1,758			-28%			1,258		1,758				-28%
	Profit / (Loss) after tax (before Prior Period items)			-616				-2,556			-			1,074			-1,043				-
Share of Associates1	106		195			-46%		338		490				-31%
	Net Profit / (Loss) after Tax from continuing			-510				-2,361			-			1,413			-553				-
	operations
Profit / (Loss) from Discontinued operations2		0			658			-100%			0		574				-100%
	Net Profit after Tax			-510				-1,703			-			1,413			21				-
	Normalized Net Profit3			748				807			-7%			2,627			2,615				0%

1. Income under share of associates primarily includes our share of profits at Shriram Capital and profit under JV with Allergan, as per the accounting standards.
2. Profit / (Loss) from Healthcare Insights & Analytics business, sold in Jan'20.
   Normalized profit excludes: (i) impact of profit/loss from discontinuing operations; (ii) reversal of Deferred Tax Assets (DTA) and Minimum Alternate Tax (MAT) credit; and (iii) additional conservative provision (net of taxes) on account of Covid-19; and (iv) other one-off items, incl. MTM gains / losses.

***

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 FY2021, with ~37% 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 is building a multi-product platform and offers home loans, loans for small businesses and loans for working capital to customers in affordable housing and mass affluent segments across Tier I, II and

1. cities. 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: Piramal Pharma Solutions, an integrated contract development and manufacturing (CDMO) business; Piramal Critical Care, a Complex

Hospital Generics business; and India Consumer Products business, that sells over-the-counter products in India. In addition, PPL 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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