Piramal Enterprises saw an 88% dip in profits for the March quarter to Rs.456 crore. However, this is not exactly comparable as in the previous fourth quarter the company had a deferred tax write back of Rs.3,569 crore on account of merger of its subsidiaries. If you remove this deferred tax benefit from the previous quarter profit of Rs.3,944 crore, the adjusted profit in the previous quarter would be Rs.375 crore. That means, the business profits of the company have actually grown. However, the stock of Piramal Enterprises has been quoting at Rs.2,398 and is lower by nearly 30% from the peak levels. There have been concerns over the company’s exposures to the real estate sector and that is putting pressure on the company. It would be better to wait out for clarity on the real estate exposures of company before taking a position. However, the good news is that Piramal is aggressively reducing its exposure to real estate lending. It is already down from 83% to 63% in the last one year and they target to bring down the number to 50% of their portfolio.