Mumbai: Non-bank lender Piramal Enterprises aims to accelerate growth pace to 15 per cent in the current financial year and increase its assets under management (AUM) to Rs 80,000 crore, according to company chairman Ajay Piramal.
Piramal Enterprises had recorded 8 per cent growth in AUM at the consolidated level in the last financial year.
The chairman told shareholders at the annual general meeting held on Monday that despite a sharp decline in the legacy wholesale business, the company is targeting to increase its total AUM by 15 per cent to Rs 80,000 crore.
He said legacy AUM will be less than 10 per cent of total AUM by the end of FY2025 and less than 5 per cent of total AUM by FY26.
Currently, 70 per cent of the total AUM is retail loans, which the company terms as 'growth business', he said and added that it has also recently crossed the Rs 50,000 crore milestone.
The chairman further said that the total AUM will almost double in three years to reach Rs 1.5 lakh crore by the end of FY2028 from the target of Rs 80,000 crore at the end of FY25.
Piramal said the share of retail business in total AUM will increase to 75 per cent by FY2028, with it also growing in the wholesale 2.0 book, which includes cash flows and asset-backed exposures in the realty sector, mid-market corporates. Are.
He said the company faced a loss of Rs 1,684 crore in FY24, mainly due to the impact of provisions made for its investments in alternative investment funds.
Piramal also said the company expects to recover most of these provisions, as seen in its January-March quarter results of FY24.
He also said the growth business is "on track" to achieve stable profitability.
Piramal Enterprises had recorded 8 per cent growth in AUM at the consolidated level in the last financial year.
The chairman told shareholders at the annual general meeting held on Monday that despite a sharp decline in the legacy wholesale business, the company is targeting to increase its total AUM by 15 per cent to Rs 80,000 crore.
He said legacy AUM will be less than 10 per cent of total AUM by the end of FY2025 and less than 5 per cent of total AUM by FY26.
Currently, 70 per cent of the total AUM is retail loans, which the company terms as 'growth business', he said and added that it has also recently crossed the Rs 50,000 crore milestone.
The chairman further said that the total AUM will almost double in three years to reach Rs 1.5 lakh crore by the end of FY2028 from the target of Rs 80,000 crore at the end of FY25.
Piramal said the share of retail business in total AUM will increase to 75 per cent by FY2028, with it also growing in the wholesale 2.0 book, which includes cash flows and asset-backed exposures in the realty sector, mid-market corporates. Are.
He said the company faced a loss of Rs 1,684 crore in FY24, mainly due to the impact of provisions made for its investments in alternative investment funds.
Piramal also said the company expects to recover most of these provisions, as seen in its January-March quarter results of FY24.
He also said the growth business is "on track" to achieve stable profitability.
