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Q3

in cr

Pharma and Manufacturing

Financial Services

Information Management

Unallocated

Total

Capital Employed

3221

9202

4293

(4607)

12110

Revenue

802

219

377

1398

Profits as reported

-5

162

132

47

346

Profits without exceptional

-5-2+34-18=9

162

132

47

350

Finance Cost

-95

PBT

241

The Pharma and Manufacturing business has finally turned cash positive, as communicated by Ajay Piramal in the 2014 AGM.

The loan book is now 3,933 cr, much of which has a 5-6% cost as the money was borrowed during the Vodafone acquisition and is usually lent at about 15-16%.

The AUM now stand at 7,286 cr whose fund management charges, itself is in the range of 1-2% a year i.e 70cr- 150 cr. Performance fee is extra 🙂

Coldstream Laboratories was acquired for 25 Million $ and the property it is based out of for 5.65 million $. The latest sales figures were about 14 Million $ and profits were undisclosed. As usual one just has to believe that it is in the best interest of the shareholders that this acquisition was made to augment the Pharma solutions business.

Piramal had said he would be investing about 12,000 cr by 2016-17 in real estate projects. The current tally is about 7,286 cr. IndiaREIT seems to be the darkest horse in his stable as of now.

The company seems to be on track, awaiting the discussions at the AGM !

2 replies on “Piramal Enterprises – Q3 Note

  1. love the fact that they have cut down R&D expenses seeing it might not be working. Good capital allocation decision.

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