Piramal Enterprises Limited (NSE: PEL; BSE: 500302) today announced in a press release about its consolidated results for the First Quarter (Q1 FY17) ended 30 June 2016.
Currently Piramal Enterprises share price is currently trading at Rs 1,602.35, 0.29 per cent. The share price opened at Rs 1,618.90 from a previous closing of Rs 1,607.05.
Financial Highlights for the quarter
- Revenue of the Company has been registered as 27 per cent higher at Rs.1,776 Crores during the quarter ended 30th June 2016
- Operating profit for Q1 FY17 is at 174 per cent higher at Rs.638 Crores
- Net Profit for the quarter is at 36 per cent higher at Rs.231 Crores
Operating Highlights for the quarter
- Loan Book increased by 112 per cent to reach Rs.16,112 Crores as on 30 Jun 2016 as compared with Rs.7,611 Crores for a year ago period.
- Pharma Solutions business’ Mahad site cleared its first ever USFDA audit without any observation.
- Critical Care business renewed major GPO or Group Purchase Organisation contract in US for Isoflurane with more than 30 per cent price increase.
- Consumer Products business completed the integration of Little’s & MSD brands which were acquired in FY2016.
- At DRG, more than 210 positions on boarded in Bengaluru and Gurugram offices.
Consolidated Revenues
Consolidated revenues for the quarter ended 30th June 2016 were 27 per cent higher at Rs.1,776 Crores as compared with Rs.1,401 Crores in the corresponding quarter of the previous year. 55 per cent of the Q1 FY17 revenues were generated in foreign currency.
Operating Profit
Operating profit for the quarter ended 30th June 2016 was 174 per centdriven by strong revenue growth and fall in research and development expenses, partly offset by higher employee benefit expenses. OPBITDA margin was higher at 36 per cent in Q1 FY2017 as compared with 17 per cent in Q1 FY2016.higher at Rs.638 Crores. This was primarily
Net Profit
Net Profit for the quarter ended 30th June 2016 was 36 per cent higher at Rs. 231 Crores. Strong profitability was mainly on account of improved performance of the top-line, lower research and development expenses and higher share of income from associates, partly offset by increase in interest expense and depreciation.
Interest Expenses
Interest expense for the quarter was higher due to the increase in debt for making investments under Financial Services segment.
Share of profit / loss of Associates
Income under share of associates for the quarter mainly includes the share in the profits of Shriram Capital for the period. The share of profit under JV with Allergan has also now been included under share of profit / loss of Associate, as per the new accounting standards.
Investment Option
The current market price of the stock is 1,624.75; as per Dynamic Levels we recommend buying in this stock at around 1561 level which could act as a good support for the stock as it is its nearest support level with a target level of 1700. This will give a favorable risk reward ratio.
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