Mumbai, Piramal Enterprises Ltd (PEL) on Wednesday reported a consolidated profit of Rs 137 crore in the March quarter, compared to a loss of Rs 196 crore in the same period a year ago, including taxation and write-back on investments in alternative investment funds. Got help from. ,
The company reported a loss of Rs 1,683 crore in 2023-24, compared to a profit of Rs 9,969 crore in the year-ago period.
PEL also announced merger with subsidiary Piramal Capital and Housing Finance (PCHFL) to meet the RBI requirement around mandatory listing for top tier financiers like itself.
The company said it aims to complete the transaction within a year after receiving all approvals.
The statement said the resulting entity will be called Piramal Finance and shareholders of PF will get one share for each PEL share they hold, along with 67 non-convertible non-cumulative non-participating redeemable preference shares of PFL.PCHFL managing director and chief executive officer, Jairam Sreedharan, said the merger will also help reduce borrowing costs as the corporate structure will become more simplified and governance standards will improve.
For the quarter under review, PEL's core net interest income declined 10 per cent to Rs 755 crore. Sreedharan attributed the decline to a 50 per cent decline in the legacy book, which the company is closing to focus on retail lending, which it calls a growth vertical. Total assets under management grew at 8 percent.
Non-interest income increased by 28 percent to Rs 323 crore in the quarter under review due to increase in dividend income.Sreedharan said there was a profit of about Rs 1,200 crore, which is almost equally divided between favorable tax orders and recovery from AIF investments made earlier after the RBI order.
Additionally, the RBI review in the AIF case helped release Rs 1,067 crore through rule changes alone, he said, adding that there is an additional investment of Rs 2,000 crore in AIFs, which is being continued and the recoveries arising from it. Will benefit from. Profit line in the coming time.
Currently, the retail-to-wholesale mix has increased to 70:30 from 33:67 in the year-ago period. Sreedharan said the growth achieved by the business forces me to rework the targets for FY2018, and added that he now expects retail sales to be 75 per cent as against 70 per cent earlier and total AUM to be 75 per cent earlier. This will increase to Rs 1.50 lakh crore.Target of Rs 1.20 lakh crore.
Going forward, Piramal is interested in opportunities to deepen small business lending, loans against gold and micro lending, he said.
In terms of unsecured loans, FY24 was soft on the growth front as concerns were expressed from all sides, Sreedharan said, adding that having risky loans between 25-30 per cent of the retail book is comfortable for me. .
Responding to a question on RBI's proposed project finance guidelines, Sreedharan said these would pose a "serious challenge" to lending if implemented in the current situation and warned that it could also lead to "severe supply shocks". .
When asked about the impact on its partnership with Paytm, Sreedharan said the company will look at existing account payments before thinking about new launches.
On Wednesday, PEL shares closed at Rs 894.95, down 3.63 per cent, on the BSE.
The company reported a loss of Rs 1,683 crore in 2023-24, compared to a profit of Rs 9,969 crore in the year-ago period.
PEL also announced merger with subsidiary Piramal Capital and Housing Finance (PCHFL) to meet the RBI requirement around mandatory listing for top tier financiers like itself.
The company said it aims to complete the transaction within a year after receiving all approvals.
The statement said the resulting entity will be called Piramal Finance and shareholders of PF will get one share for each PEL share they hold, along with 67 non-convertible non-cumulative non-participating redeemable preference shares of PFL.PCHFL managing director and chief executive officer, Jairam Sreedharan, said the merger will also help reduce borrowing costs as the corporate structure will become more simplified and governance standards will improve.
For the quarter under review, PEL's core net interest income declined 10 per cent to Rs 755 crore. Sreedharan attributed the decline to a 50 per cent decline in the legacy book, which the company is closing to focus on retail lending, which it calls a growth vertical. Total assets under management grew at 8 percent.
Non-interest income increased by 28 percent to Rs 323 crore in the quarter under review due to increase in dividend income.Sreedharan said there was a profit of about Rs 1,200 crore, which is almost equally divided between favorable tax orders and recovery from AIF investments made earlier after the RBI order.
Additionally, the RBI review in the AIF case helped release Rs 1,067 crore through rule changes alone, he said, adding that there is an additional investment of Rs 2,000 crore in AIFs, which is being continued and the recoveries arising from it. Will benefit from. Profit line in the coming time.
Currently, the retail-to-wholesale mix has increased to 70:30 from 33:67 in the year-ago period. Sreedharan said the growth achieved by the business forces me to rework the targets for FY2018, and added that he now expects retail sales to be 75 per cent as against 70 per cent earlier and total AUM to be 75 per cent earlier. This will increase to Rs 1.50 lakh crore.Target of Rs 1.20 lakh crore.
Going forward, Piramal is interested in opportunities to deepen small business lending, loans against gold and micro lending, he said.
In terms of unsecured loans, FY24 was soft on the growth front as concerns were expressed from all sides, Sreedharan said, adding that having risky loans between 25-30 per cent of the retail book is comfortable for me. .
Responding to a question on RBI's proposed project finance guidelines, Sreedharan said these would pose a "serious challenge" to lending if implemented in the current situation and warned that it could also lead to "severe supply shocks". .
When asked about the impact on its partnership with Paytm, Sreedharan said the company will look at existing account payments before thinking about new launches.
On Wednesday, PEL shares closed at Rs 894.95, down 3.63 per cent, on the BSE.
