Conference Call with Piramal Enterprises Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Piramal Enterprises announced Q3FY25 results Total Assets Under Management (AUM) grew 16% YoY to Rs 78,362 crore, led by our Growth1 business. Growth to Legacy AUM mix has improved to 87:13 from 34:66 in FY22. Growth AUM grew 40% YoY to Rs 68,009 crore. Legacy (discontinued) AUM down 14% QoQ and 45% YoY to Rs 10,353 crore, down 76% since FY22. AIF recoveries of Rs 551 crore including gains of Rs 376 crore. 9M FY25 gains of Rs 557 crore. Expect further significant recoveries in Q4FY25 and FY26. Consolidated GNPA at 2.8% with NNPA ratio at 1.5%. Growth business credit cost at 1.9% from 1.6% in Q2FY25. Reported a consolidated Profit After Tax (PAT) of Rs 39 crore. Pro forma Growth business PBT-ROA of 1.4%. Net worth of Rs 26,924 crore with capital adequacy ratio at 23.7% on consolidated balance sheet. Strong liquidity with cash and liquid investments of Rs 8,277 crore (9% of total assets). Further strengthening the balance sheet, deferred consideration of USD 140 million expected in FY26 from 2018 divestment of Piramal Imaging. With regard to the PEL-PCHFL merger, on December 23, 2024, the RBI has advised PCHFL to change the name to Piramal Finance Ltd. and submit the new certificate of incorporation and MoA indicating the new name and the intended business as NBFC-ICC. The application for name change is being processed with ROC. We expect to complete the merger process by September 2025. Ajay Piramal, Chairman, Piramal Enterprises, said: “While the overall macroeconomic environment remains challenging with subdued growth, we are encouraged by steady growth in loan disbursements, AUM growth, and sustained asset quality. We continue to actively run down the legacy book, ensuring a sharper focus on our Growth businesses, which are expected to perform well. Continued improvement in the operating performance of our retail lending business is encouraging. Our capital and liquidity position continue to be strong. Looking ahead, the agile integration of PEL and PCHFL into a unified financial services entity, renamed as Piramal Finance Ltd., underpins our optimism for the future.” Result PDF
Finance company Piramal Enterprises announced Q2FY25 results Total Assets Under Management (AUM) grew 12% YoY to Rs 74,692 crore, led by our Growth business. Growth to Legacy AUM mix has improved to 84:16 from 34:66 in FY22. Growth AUM grew 45% YoY to Rs 62,626 crore. Legacy (discontinued) AUM down 49% YoY to Rs 12,066 crore, down 72% since FY22. Opex-to-AUM of Growth business down 80bps YoY to 4.5% now. Consolidated GNPA at 3.1% with NNPA ratio at 1.5%. Reported a consolidated Profit After Tax (PAT) of Rs 163 crore. Net worth of Rs 26,930 crore with capital adequacy ratio at 23.3% on consolidated balance sheet. Ajay Piramal, Chairman, Piramal Enterprises said: “As we reflect on Q2 FY25, I am pleased with the strong momentum in our Growth business, which has significantly boosted AUM and profitability. Our strategic focus on growth along with controlled risk and operating leverage continues to yield strong results. We have made strides in digital enhancement, borrowing diversification, and ensuring robust asset quality. We are on track to reduce legacy discontinued AUM to below 10% of total AUM by March 2025, with ongoing recovery efforts strengthening our financial position. In October 2024, we raised an additional USD150 million through a Sustainability Bond, which was oversubscribed 3.5 times, reflecting strong investor confidence in our vision for sustainable growth. Looking ahead, we remain committed to innovation and operational efficiency as we continue delivering a diverse range of financial solutions to our customers. I extend my sincere gratitude to our stakeholders for their continued support. We are focused on the steadfast execution of our identified strategy. This should position us well to build a resilient organisation for a long-term success.” Result PDF