Piramal Ent

Thanks to the forex gain of Rs.23 crore, the company managed to post a consolidated net profit at Rs.26 crore, an over two-fold increase on a YoY. What also helped that it sold a part of its land parcel, part of the 20 acres it has at Sri Lanka. This entire Rs.13.05 crore which forms the ‘other income’ is from the land sale. But for these, the company’s performance has been lackluster, with consolidated net revenue rising 11% at Rs.428 crore.  In terms of segment break-up, cosmetics and perfumes remains its mainfray, contributing 55% to the topline and YoY, this rose 17%. Pharma contributed 25% and it grew 10% while speciality is a laggard, growing just 2%.

The company has a huge debt and its total outstanding loan book is around Rs.1350 crore. The company’s interest outgo is pretty huge at Rs.35 crore, up 75% sequentially and for FY13, outgo stood at Rs.104 crore. The company hopes to use part of this land sale proceeds to retire some of its debt. Looking ahead, interest outgo apart, in coming months, one needs to keep on its raw material costs – wherein soda ash is imported. Its energy bill is also high but it pays this in US dollars and cost too in Q2 could show a big rise. But parts of this could be offset through its exports which contributes 75% to its revenue.