Earnings Review
Piramal Ent consol PAT dn 25% on high base from AIF recovery
This story was originally published at 19:41 IST on 6 May 2025
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--Piramal Ent Jan-Mar consol net profit INR 1.02 bln vs INR 1.37 bln yr ago
--Piramal Ent Jan-Mar consol revenue INR 28.54 bln vs INR 24.73 bln yr ago
--Piramal Ent FY25 consol PAT INR 4.85 bln vs INR 16.84 bln loss yr ago
--Piramal Ent FY25 consol revenue INR 102.70 bln vs INR 100.20 bln yr ago
--Piramal Ent to pay INR 11 per share final dividend for FY25
--Piramal Enterprises consol AUM at INR 806.89 bln on Mar 31, up 17% on yr
--Piramal Ent expects consol AUM to rise 25% YoY to INR 1 tln by FY26-end
--Piramal Ent expects FY26 consol PAT at INR 13 bln-INR 15 bln
--Piramal Ent retail AUM at INR 646.52 bln as of Mar 31, up 35% on year
--Piramal Enterprises gross NPA ratio at 2.8% on Mar 31, unch from qtr ago
--Piramal Enterprises net NPA ratio at 1.90% on Mar 31 vs 1.50% qtr ago
By Christina Titus
MUMBAI – Piramal Enterprises Ltd. on Tuesday posted a 25% year-on-year fall in its consolidated net profit for the final quarter of 2024-25 (Apr-Mar) due to a higher base, with the lender having reported an exceptional gain of INR 15.18 billion in the corresponding quarter a year ago.
The company's consolidated bottom line for Jan-Mar was down at INR 1.02 billion, but was up 166% from Oct-Dec. In Jan-Mar 2024, the company had reversed INR 15.18 billion of provisions in respect of its investments in Alternative Investment Funds after making certain recoveries from the same. The company had then said that it was confident of fully recovering the balance investment.
In the March quarter, Piramal Enterprises' consolidated revenue from operations was up 15% on year at INR 28.54 billion, with interest income up 19% at INR 22.64 billion. On the cost front, total expenditure was down 36% on year at INR 30.07 billion, primarily due to the reversal of impairments to the tune of INR 10.85 billion.
Shares of the company Tuesday closed 4.5% lower at INR 962.80 on the National Stock Exchange. The lender, which detailed its earnings after market hours, also announced a final dividend of INR 11 per share for FY25.
On the asset quality front, the non-bank lender's gross non-performing assets ratio was 2.8% as on Mar. 31, unchanged from a quarter ago but up from 2.4% last year. The net NPA ratio increased to 1.9% from 1.50% at the end of December and 0.8% a year ago. Credit cost stood at 1.8% for the March quarter, slightly up from 1.7% in Oct-Dec.
The total assets under management of Piramal Enterprises rose 17% on year to INR 806.89 billion as on Mar. 31, with retail assets growing 35% to INR 646.52 billion. The company sees total assets under management growing 25% in FY26 to around INR 1 trillion, with a consolidated profit after tax of INR 13 billion to INR 15 billion expected to be posted for the year as a whole. For FY25 as a whole, Piramal Enterprises' consolidated net profit stood at INR 4.85 billion against a loss of INR 16.84 billion in FY24, with revenue from operations up a mere 2.5% at INR 102.70 billion.
"We have received RBI approval for the merger of PEL (Piramal Enterprises) into PFL (Piramal Finance) and are now working through the NCLT process, which we expect to complete within the next five months. Once concluded, we will operate as a single entity--Piramal Finance Ltd. As we look ahead, we are confident in our ability to sustain this momentum and continue building a scaled financial services platform that delivers consistent and high-quality performance. In FY26, we expect a sharp year-on-year increase in our consolidated PAT, led primarily by our Growth business profits," Ajay Piramal, chairman of Piramal Enterprises, was quoted as having said in a release. End
Edited by Ashish Shirke
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