Following the consolidated net loss of ₹69.81 crore for the first quarter ended 30 June 2018, Piramal Enterprises on Tuesday indicated that they may close down their analytics subsidiary Decision Resources Group.
According to a report, Ajay Piramal, Chairman of Piramal Enterprises indicated that the company may close down the Decision Resources Group if it fails to grow revenue and improve profitability. This news comes as a rude shock against the backdrop of the analytics sector in India doing very well, in general.
Piramal told the news portal, “If we find that, in the future, this is not happening, we will go for unlocking value.”
Decision Resources Group is a global information and technology services company that provides proprietary data and solutions to the healthcare industry. They provide end-to-end solutions to complex challenges in healthcare.
Piramal Enterprises had bought out Burlington-based Decision Resources Group in 2012 for $635 million.
But reports have suggested that Decision Resources Group sales have been almost flat over the last three financial years. Piramal told the news portal that the underwhelming performance by DRG was due to a shift in the delivery model from large-scale and static research reports to digitally-delivered and user-centric applications and services.
“What has happened now is that it has gone towards real-world data and more analytics. That is the transition we are taking to… There are some early signs of topline growth. Now we are focusing on improving the profitability. Yes, it is an area of focus for the management to ensure this. And we are monitoring it closely,” Piramal said.
As of now, the Decision Resources Group constitutes only 11 percent of Piramal’s revenues.
As of now, DRG has more than 1,000 employees 17 offices worldwide including New York, London and Tokyo.