Piramal Enterprises : Announces Consolidated Results for Q4 FY2017 and FY2017

Delivering robust performance year after year

• Best performance in terms of top-line growth in the last 16 quarters*

• Board of Directors approves raising of funds of up to Rs.5,000 crores**

Mumbai, India, May 12, 2017: Piramal Enterprises Limited ('PEL', NSE: PEL, BSE: 500302) today announced its consolidated results for Q4 FY2017 and FY2017.

*Highlights

• Strong revenue growth during the quarter and the full year period

  • Up 46% at Rs.2,463 Crores during Q4 FY2017 vs. Rs.1,691 Crores during Q4 FY2016

  • Up 34% at Rs.8,547 Crores during FY2017 vs. Rs.6,381 Crores during FY2016

• Operating profit was :

  • 135% higher at Rs.1,119 Crores during Q4 FY2017 vs. Rs.476 Crores during Q4 FY2016

  • 94% higher at Rs.3,733 Crores during FY2017 vs. Rs.1,929 Crores during FY2016

• OPBITDA Margin was :

   Up at 44% in Q4 FY2017 vs. 27% in Q4 FY2016

   Up at 43% in FY2017 vs. 29% in FY2016

• Net Profit :

  • Increased by 61% to Rs.311 Crores for Q4 FY2017 vs. Rs.193 Crores for Q4 FY2016

  • Increased by 38% to Rs. 1,252 Crores for FY2017 vs. Rs.905 Crores for FY2016

• Loan Book grew by 87% to Rs.24,400 Crores as on 31 Mar 2017 vs. Rs.13,048 Crores as on 31 Mar 2016

• The Board has recommended a final dividend of Rs.21 per share.

Mr. Ajay Piramal, Chairman of Piramal Enterprises, said: "We are pleased to announce that Piramal Enterprises has achieved robust revenue and profitability for the year. The Company has delivered Rs.8,547 Crores of revenues for the year, recording a 34% growth; and net profits of Rs 1,252 Crores for FY2017, up 38% over last year. Strong growth across all businesses during the quarter enabled us to deliver the best quarterly performance over the last few years. We remain steadfast in our commitment to generate year-on-year improved performance and to drive innovative strategic business initiatives that bolster growth, strengthen our market leadership and consistently create long-term value for our shareholders."

**Board Approves Fund Raising of upto Rs 5000 crores Our performance

• Long term - Over a period of 29 years, Piramal Enterprises has delivered revenue CAGR of 24% and net profit

  CAGR of 29%.

• Medium term - With consistent growth across all three business segments, the Company's revenues grew at a CAGR of 29%, while its net profit grew by 62%, in the last five years.

• Near-term1 - It has consistently improved its revenue and net profit performance over the last 10 quarters, with top-line growth higher than 25% during each of the four quarters. In the last two years, our net profit has grown over 30% in each quarter.

  Value creation

• The Company has delivered an annualised return2 of 30% to its shareholders, one of the very few companies to create such value for its shareholders for around a period of 29 years. Over last 5 years period, the Company has delivered an annualised shareholder return2,3 of 47% as compared with 14% return delivered by NIFTY Index.

• The Company has returned over Rs.5,200 Crores (i.e. 1/3rd of our current book value) to its shareholders in form of dividends, special dividends and buyback since the Abbott deal.

• Merely less than Rs. 500 Crores of external capital raised till date.

  Fund Raising

  In order to support future growth, the Board of Directors of the Company today approved raising of funds by issue of equity shares, global depository receipts, American depository receipts, foreign currency convertible bonds, fully convertible debentures, partly convertible debentures, non-convertible debentures along with warrants (with a right exercisable by the warrant holder to exchange the said warrants with equity shares) and/or any other financial instruments convertible into equity shares (including warrants, or otherwise) and/or any security convertible into equity shares and/or securities linked to equity shares and/or securities with or without detachable warrants with right exercisable by the warrant holders to convert or subscribe to equity shares (collectively, "Securities") or any combination of Securities, in one or more tranches, whether Rupee denominated or denominated in one or more foreign currency(ies), in the course of international and/or domestic offering(s) in one or more foreign markets and/or domestic market, through public, rights, private offerings (including qualified institutions placement) or any combination thereof, as may be permitted under applicable law to eligible investors up to an amount not exceeding Rs.5,000 Crores (Rupees Five Thousand Crores) or an equivalent amount thereof (the "Offering").

  The Offer shall be undertaken in accordance with the applicable laws, including the Companies Act, 2013 and rules framed thereunder and other applicable rules, regulations and guidelines prescribed by Securities and Exchange Board of India, Government of India, Reserve Bank of India, the Registrar of Companies, Maharashtra at Mumbai, BSE Limited and National Stock Exchange of India Limited and any other competent authorities, and in such manner and on such price, terms and conditions in accordance with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other provisions of the applicable laws.

  The Board has constituted the Administrative Committee of Directors to take decision on type of Offering and for taking all necessary actions in connection with the Offering. Further, the Board has approved the postal ballot notice for obtaining the approval of the shareholders of the Company for the Offering.

  Note: 1. FY2015 quarterly net profit numbers exclude exceptional gain from Vodafone transaction and exceptional loss from NCE shutdown

• Analysis carried out based on market information till April 2017. Assumed dividend reinvested in the stock.

• Source: Bloomberg

Consolidated Financial Performance

(Rs. Crores or as stated)

The Company is among the pioneers in adoption of IndAS for NBFC business. We have already implemented it for the year 2015-16 and 2016-17.

Consolidated Revenues

Consolidated revenues were 46% higher at Rs.2,463 Crores for Q4 FY2017 and 34% higher at Rs.8,547 Crores for FY2017. The Company has delivered a strong revenue performance with growth across all three business segments. 48% of our Q4 FY2017 revenues and 51% of our FY2017 revenues were earned in foreign currency.

Operating Profit

Operating profit for Q4 FY2017 was 135% higher at Rs.1,119 Crores, primarily driven by strong revenue performance across all businesses during the quarter, increase in non-operating other income and fall in R&D expenses. OPBITDA margin was higher at 44% in Q4 FY2017 as compared with 27% in Q4 FY2016.

Operating profit for FY2017 was 94% higher at Rs.3,733 Crores, mainly on account of higher revenue growth. OPBITDA margin was higher at 43% in FY2017 as compared with 29% in FY2016.

Net Profit

Net Profit for Q4 FY2017 was up by 61% at Rs.311 Crores as compared to Rs.193 Crores in Q4 FY2016. Strong profitability was mainly on account of improved performance across business segments and lower R&D expenses. Net Profit for FY2017 was Rs.1,252 Crores.

Interest Expenses

Interest expense for the Q4 FY2017 and FY2017 were higher primarily on account of increase in debt for making investments under Financial Services segment.

Share of Associates

Income under share of associates for the Q4 FY2017 and FY2017 primarily includes our share in the profits of Shriram Capital for the period. Our 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.

Business-wise Revenue Performance

(Rs. Crore or as stated)

* Excludes Opthalmology

Pharma

Revenue from Pharma business was 31% higher at Rs.1,214 Crores in Q4 FY2017 and 12% higher at Rs.3,893 Crores in FY2017.

Revenue from Global Pharma business was 29% higher at Rs.1,103 Crores in Q4 FY2017, mainly on account of addition of new products, strong order book and deliveries across all key segments of the business. Revenue for FY2017 was 10% higher at Rs. 3,517 Crores primarily due to addition of differentiated hospital branded generic products portfolio. The Company is executing on its strategy of moving up the value chain with the acquisition of two high margin niche branded generic product portfolios from Janssen and Mallinckrodt and acquisition of Ash Stevens, a US based facility focused on high potency APIs.

Despite of demonetization, revenue from India Consumer Products business grew 45% at Rs.111 Crores for Q4 FY2017 and by 44% higher at Rs.375 Crores for FY2017. During the year, we acquired four brands from Pfizer Ltd. and have successfully integrated all three Consumer Product acquisitions. All these three acquisitions - Little's, MSD brands and Pfizer brands have already surpassed their erstwhile annual sales within a short span of time post acquisition. We also launched various brands (including brands extensions) like Throatsil, StopAllerG, Polycrol Paan, i-pill daily, Quikkool-D, Tetmosol Total cream and StopAllerG All Day among others.