Piramal Enterprises Q1 results: Net profit down 64% at Rs 181 crore

Piramal Enterprises reported a consolidated net profit of Rs 181 crore in April-June of FY25, down 64 per cent compared to the year-ago period, owing to a one-time gain of Rs 855 crore accrued in Q1FY24 due to a stake sale in a Shriram Group entity.

Sequentially, the profit was up 32 per cent from Rs 137 crore in Q4FY24.

The net interest income of the company rose by 18 per cent year-on-year (Y-o-Y) to Rs 807 crore from Rs 681 crore in Q1FY24, while other income grew by 33 per cent Y-o-Y to Rs 58 crore. The company also made an exceptional gain of Rs 104 crore from gross AIF recoveries during the quarter under review.

 

The net interest margin (NIM) of the finance company dropped to 6.7 per cent compared to 7.3 per cent in the last year. The total assets under management (AUM) of the company grew by 10 per cent to Rs 70,576 crore over the corresponding year-ago period, supported by double-digit growth in the growth and legacy book of the company.

The retail AUM, which accounts for 72 per cent of the total AUM, increased by 43 per cent Y-o-Y to Rs 50,000 crore.

“We have had a strong first quarter. For the full year, we had guided 15 per cent growth in headline AUM; we did 10 per cent in this quarter. We plan to grow at 15 per cent. The retail business is likely to slow down; we are not likely to grow 40 per cent on a consistent basis given the environment. With the retail and wholesale business, after accounting for shrinkage in our legacy book, we will still grow our headline AUM at 15 per cent Y-o-Y,” Jairam Sridharan, MD, Piramal Capital & Housing Finance, said in a post-earnings media interaction.

The cost of funds for the company dropped to 6.4 per cent in comparison to 7.2 per cent last year, on the back of growing securitisation and international borrowing. Sridharan said that the company plans to diversify its borrowing mix by expanding securitisation and reducing dependency on banks. The mortgage business of the company grew by 37 per cent Y-o-Y to Rs 34,101 crore.