InvestorQ : How do you see Piramal Enterprises stock after the latest quarter results?
Juvina Maggie made post

How do you see Piramal Enterprises stock after the latest quarter results?

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Angel dcosta answered.
8 months ago
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Piramal Enterprises Ltd (PEL) posted a massive consolidated net loss of Rs.1703 crore for the Mar-20 quarter. This was largely on the back of its financial services arm taking a massive provision of Rs.1903 crore to cover uncertainty in recovery of loans in the midst of the global covid-19 pandemic. Last March, PEL had posted net profits of Rs.455 crore. Considering the risks in the financial services segment, PEL consciously shrunk its wholesale loan book by 12% and reduced large single borrower exposure by Rs.4200 Crores. These measures are likely to de-risk their business model substantially. The company’s financial segment posted an operational loss of Rs.1705 crore while the pharmaceutical segment recorded a Rs.475 crore operating profit. In the pharmaceutical business, revenue growth was led by its contract drug manufacturing and complex hospital generics operations. The company officials stressed that the company had significantly strengthened and deleveraged its balance sheet through multiple initiatives. The company’s net debt reduced by Rs.17,838 crore to Rs.37,283 Crore on the back of conscious deleveraging in the aftermath of asset monetization.

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