 "Piramal Enterprise reports net profit of Rs 48 crore in July-Sept quarter")
Piramal Enterprises posted a net profit of Rs 48 crore in the July – September (Q2FY24) quarter as compared to a net loss of Rs 1,536 crore reported in the year-ago period.
The Net Interest Income (NII) moderated to Rs 750 crore in the quarter under review from Rs 829 crore in the year-ago period. Total income stood at Rs 914 crore, 3 per cent down from Rs 943 crore across the time period, while other income rose 44 per cent year-on-year (Y-o-Y) to Rs 164 crore during the second quarter of FY24.
“Our performance in the second quarter was supported by growth in Assets Under Management (AUM), led by retail business. The improved mix between the retail and wholesale showcases our dedicated efforts in building a robust and diversified non-banking financial institution,” said Ajay Piramal, Chairman of Piramal Enterprises.
The AUM of the company grew by 5 per cent to Rs 66,933 crore in the reported quarter from Rs 63,780 crore of the year-ago period. Retail AUM, which contributes to 58 per cent of the total AUM, rose by 55 per cent Y-o-Y to Rs 38,604 crore.
“After having a stable and somewhat stagnant AUM profile for eight or nine quarters, we have seen an AUM growth trajectory start. Over the last nine quarters, the AUM has not changed much because we have been de-growing wholesale and we have been growing retail, substituting one for the other," said Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Limited.
Further speaking on retail lending, Piramal said, “Our retail lending business is consistently growing, driven by increased disbursements to fulfil the credit needs of the 'Bharat' market. We will continue investing in talent, branches, cognitive intelligence, and data analytics to keep this momentum going.”
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The company has 442 branches and 142 microfinance active branches, serving 596 districts across 25 states.
Speaking on the risk and problems on the credit risk front, Sridharan added, “We have had a pretty strong quarter on asset quality with overall credit risk profile improving to stable in all retail lending products, specifically in unsecured lending. The 90-plus delinquency rates of the firm have gone from 1.6 per cent at the end of the last quarter to 1.4 per cent at the end of this quarter.”