Piramal Enterprises logs consolidated net profit of Rs 509 crore in Q1

Piramal Enterprises has posted consolidated net profit of Rs 509 crore in the quarter ended June 30 (Q1FY24), led by gain of Rs 855 cr on sale of stake in Shriram Finance.

The non-banking finance company had posted a net profit of Rs 8,155 crore in Q1FY23. Its net interest income (NII) declined by 17 per cent year-on-year (YoY) basis to Rs 891 crore in Q1FY24 from Rs 1,069 crore in Q1FY23.

Dwelling on NII trend, Jairam Sridharan, managing director, Piramal Capital & Housing Finance said the NII declined due to rise in share of non-earning assets on issuance of Security Receipts worth Rs 2,004 crore. The interest expenses also went up, Sridharan added.

Firm to buy back shares worth Rs 1,750 crore 

Piramal Enterprises will buy back its equity shares valued upto Rs 1,750 crore for effective utilisation of capital and creating long term value for stakeholders.

The board of directors has approved a buyback up to 14 million equity shares (face value of Rs 2 each) at a price of Rs 1,250 per share. This represents 5.87 per cent of the pre-buyback fully paid-up equity shares.