Piramal Enterprises looks at sustained growth, profitability: Chairman

Piramal Ventures is looking forward to sustainable growth and profitability with the past few years spent making balance sheets and companies more resilient to weather unexpected uncertainties, according to Chairman Ajay G Piramal.

Addressing shareholders in the annual report 2022-23, the business leader said efforts over the past years showed positive results with the group ending the last financial year with a net profit of Rs.9,969 crore and total assets of Rs.83,386 crore.

“We are now focused on sustainable growth and profitability and balancing three pillars – growth, risk and profitability,” said Piramal.

He added that focused business entities not only ensure focus on business strategies, but also help promote and ensure effective use of our capital and human resources.

“We are certain that the resulting long-term value will be realized for all stakeholders through the strategic selection of our retail and wholesale bets backed by state-of-the-art technology, diligent risk management and exceptional leadership,” said Piramal.

He noted that the creation of two separate entities in financial services and pharmaceuticals has resulted in a stronger governance structure, with dedicated board and management teams for the two companies.

He added, “The separation allows us to ensure optimal capital structures for each company, and it will also facilitate the growth of the business independently, by pursuing organic and inorganic growth plans.”

Piramal stated that in fiscal 2020, the group’s business demonstrated resilient performance while navigating global macroeconomic and geopolitical headwinds.

He added that the company continues its declared path in implementing renewable strategies to drive sustainable growth.

“The company’s major turnaround saw its fruits in fiscal 2023 and is the foundation upon which sustainable growth will be achieved in the time ahead,” said Piramal.

The Group has completed one year of acquisition and integration of DHFL, thus driving growth and diversification of the business, and progress towards making it more retail oriented.

In wholesaling, the group has completed the cycle of asset recognition, appropriate asset provisioning and sound reserve stock creation.

“In real estate, we will focus on large and medium developers, where 49 per cent of projects are in late stage or completed. Leveraging our retail setup, we will also enter selectively into the Tier 2 and Tier 3 markets with relatively little penetration,” said Piramal. .

He indicated that the group remains confident in the long-term success of the financial services business, as it moves closer to its stated aspirations for FY27.

“PEL’s unique business model, size and balance sheet strength are positioned to profitably capitalize on growth opportunities and create sustainable value over the long term,” said Piramal.

The Piramal Group has a presence across the pharmaceutical, financial services and real estate sectors.

It has offices in more than 30 countries and global brands in more than 100 markets.