Piramal Ent

Piramal Enterprises is a diversified company, with a presence in pharmaceutical, financial services and information management sectors. The company posted a set of dismal numbers for Q1FY14. The company incurred a one-time charge of Rs.124.07 crore on discounting receivables. This has been included in the finance costs and this has pushed the company in the red. There is also Rs.38 crore towards refinancing of debttaken for acquisition of Decision Resources group. This too was included in the finance costs, which stands at Rs.332 crore, as against consolidated net sales of Rs.958 crore, which qoQ was up 3%. Despite lowering operating costs and a hefty other income component of Rs.114 crore, the company posted a net loss at Rs.146 crore, lower than the loss of Rs.195 crore in Q4FY13.

The company has also added on an exceptional expense of Rs.6.25 crore which was on account of VRS and employee severances. Tax outgo for the quarter was also higher at Rs.10 crore, up 150% QoQ. During the quarter, the company also invested Rs.500 crore in Green Infra through Optionally Convertible Debentures. It acquired a 10% stake in Shriram Transport Finance for Rs.1634 crore.  The company has a lot of growth models going for it at the same time but as of now, it has disappointed the markets.