Piramal Enterprises Receives GST Demand Of Rs 1,501 Crore
The tax demand has been issued in relation to the sale of the pharma business to Piramal Pharma in fiscal 2021, along with transfer of its subsidiary companies amounting to Rs 4,487 crore.
Piramal Enterprises Ltd. said on Friday that it received a goods-and-services-tax demand order totalling Rs 1,502 crore.
The amount includes tax, interest and penalties from the office of the deputy commissioner of state tax, Maharashtra, according to an exchange filing on Friday. The penalty imposed by authorities amounts to Rs 83 crore.
The tax demand has been issued in relation to the sale of the pharma business by the company to Piramal Pharma Ltd. in fiscal 2021, along with transfer of its subsidiary companies amounting to Rs 4,487 crore.
The department contended that this is not a slump sale but an itemised sale and has levied a GST of 18% on the entire sale consideration, as per the exchange filing.
The company believes that it has more than adequate grounds to support its position in the matter. "The company will take appropriate steps in its best interest and reasonably expects to have a favourable outcome of getting the order set aside. The company is advised that the order will have no impact on the statement of profit and loss for the year," said the filing.
The financial services company reported a net profit of Rs 38.6 crore for the quarter ended Dec. 31, 2024, of the current fiscal 2025, as compared to a loss of Rs 2,378 crore for the same period last year.
It posted an exceptional gain of Rs 376 crore, without which the company would have posted a loss of Rs 337.4 crore.
The company's revenue fell by 1.1% to Rs 2,449 crore for the third quarter as against Rs 2,476 crore for the year-ago period.
The non-banking financial company's earnings before interest, tax, depreciation and amortisation dipped to Rs 1,075 crore, denoting a 10.8% fall for the October-December quarter from Rs 1,205 crore for the same quarter in the previous financial year.
Margins narrowed to 43.9% for the quarter under review, in contrast to 48.7% for the same period last year.
Shares of the company closed 3.44% lower at Rs 874.15 apiece, as compared to a 1.86% decline in the benchmark NSE Nifty 50.
