Diversified business conglomerate Piramal Enterprises posted a 23-per cent rise in its consolidated net profit at ₹603.27 crore for the quarter ending December 31, 2018 as the company posted a strong growth across its businesses, especially financial services, housing finance and consumer products during a volatile environment.
The company’s net profit in the yearago period stood at ₹490 crore in the third quarter of the fiscal 2019.
Piramal Enterprises, which has business ranging from pharma to financial services, continued to grow its revenues at over 20 per cent during the October-December quarter. Its consolidated revenues from operations stood at ₹3,489 crore ( ₹2,858 crore) posting an increase of 22 per cent.
Sales from the overall financial services, including housing finance, grew by 40 per cent at ₹1,841 crore during the quarter that also witnessed the worst financial crisis as infrastructure lending group IL&FS disclosed that it had debt worth a whopping ₹91,000 crore. .
However, Piramal Enterprises Chairman Ajay Piramal told mediapersons while announcing its Q3 earnings that despite the volatile business environment, the group continued to deliver a strong growth and sailed through the crisis.
He further added that in the medium-term, the NBFC sector is likely to witness a major consolidation where a good promoter with good track record will survive and added that he expects that NBFC will turn into a strong business in the coming quarters.
Piramal’s total loan book grew by 45 per cent at ₹55,255 crore ( ₹38,036 crore). Gross NPA ratio was at 0.5 per cent.
Housing finance arm
On its housing finance business, Piramal said the loan book grew by strong 69 per cent and added that the real estate is already witnessing consolidation but the company has not seen any stress. He further added that though the housing loans have been lower during the said period due to liquidity crisis, the property prices have not come down. “The basic demand in real estate is higher,” he added.
For the company, realty loans form about 6-7 per cent of the total loan book and the idea is to increase that share to 10 per cent by March 2019.