Piramal Enterprises Ltd Share Price – NSE  /  BSE

Finance, Small Cap

PCHFL will be utilizing the investment towards business/general corporate purposes, said the firm.

“There is no change in the shareholding percentage of the company in PCHFL pursuant to the aforesaid investment. The transaction being between the holding company and its wholly owned subsidiary, it is exempt from the purview of related party transactions,” the company stated in the press release.

The interest of the promoter/promoter group/group companies of the company is only to the extent of PCHFL being a wholly owned subsidiary, it added.

PCHFL is an existing wholly owned subsidiary of the company and its turnover for FY21, FY22 and FY23 was Rs 5,08,165 lakh, Rs 6,03,861 lakh, and Rs 6,59,178 lakh, respectively.

Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.

The NBFC reported a consolidated net loss of Rs 2,377.59 in Q3 FY24 as against a net profit of Rs 3,545.37 crore recorded in Q3 FY23. Total income declined 11.18% year on year to Rs 2,546.20 crore in the quarter ended 31 December 2023.

Shares of Piramal Enterprises declined 0.70% to Rs 852.70 on the BSE.

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Piramal Enterprises has allotted 15,000 Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (Debentures) each having a face value of Rs.1,00,000/-, aggregating to Rs. 150 crore on a private placement basis.

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In a regulatory filing, the NBFC said that its Administrative Committee of the board of directors will consider and approve the issue of secured, rated, listed, redeemable, non-convertible debentures up to Rs 100 crore along with the green shoe option to retain oversubscription up to Rs 500 crore, the total size aggregating up to Rs 600 crore, on a private placement basis.

Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.

The NBFC reported a consolidated net loss of Rs 2,377.59 in Q3 FY24 as against a net profit of Rs 3,545.37 crore recorded in Q3 FY23. Total income declined 11.18% year on year to Rs 2,546.20 crore in the quarter ended 31 December 2023.

Shares of Piramal Enterprises declined 0.56% to settle at Rs 889.15 on the BSE.

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The drop was on account of an exceptional loss of Rs 3,339.80 crore linked to its investments in alternative investment funds (AIFs).

In December quarter, the company reported profit after tax (PAT) of Rs 290 crore, excluding impact of AIF provisions.

Total income declined 11.18% year on year to Rs 2,546.20 crore in the quarter ended 31 December 2023.

Revenue from operations stood at Rs 2,475.65 crore in Q3 FY24, down 11.94% from Rs 2,811.24 crore in Q3 FY23.

Net interest income (NII) decreased by 19% YoY to Rs 835 crore in Q3 FY24 as compared to Rs 1,033 crore posted in the same period a year ago.

Pre provision operating profit (PPOP) was at Rs 389 crore for the third quarter of FY24, sliding 71% as against Rs 1,335 crore reported in Q2 FY23.

Total assets under management (AUM) was at Rs 70,823, registering a growth of 6% QoQ and 9% YoY, excluding impact of AIF provisions. Provisions of Rs 3,540 crore taken pursuant to RBI circular on AIF investments, led to reduction in AUM.

Disbursements grew 50% YoY to Rs 7,692 crore during the period under review.

The NBFC’s net worth stood at Rs 26,376 crore with capital adequacy ratio at 24.3% on consolidated balance sheet.

GNPA ratio reduced to 2.4% in Q3 FY24 from 4% in Q3 FY23. NNPA ratio in Q1 FY24 decreased to 1.1% as compared to 1.7% in Q3 FY23.

Ajay Piramal, Chairman, Piramal Enterprises, said, “We have achieved significant milestones outlined in our strategic roadmap earlier in this financial year. We have made progress across key areas, including AUM growth momentum, business mix optimization, enhanced underlying operating profitability, and improved asset quality. Notably, we are surpassing our medium-term guidance in terms of growth and business mix.

In response to the RBI circular issued in December, we made complete provisions for our investments in AIFs, subsequently removing them from our AUM. We have made substantial enhancements to our net interest margins, achieved robust fee income growth, and optimized opex ratios to deliver a strong core operating profit. Our commitment is to further enhance profitability by optimizing operating leverage in our growth business and reducing the contribution of the legacy business.

Positioned as an at-scale player in both retail and wholesale segments, PEL is poised for continued growth and improved profitability. The trajectory forward involves steadily scaling up our growth business, strategically winding down legacy wholesale assets, and divesting non-core assets. We believe, this approach will drive future growth and sustained profitability.”

Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth ~$10 billion, with a network of branches across 25 states/UTs.

Shares of Piramal Enterprises rallied 3.24% to Rs 912.15 on the BSE.

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