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
Finance company Piramal Enterprises announced Q1FY25 results: Total Assets Under Management (AUM) grew 10% YoY to Rs 70,576 crore, led by our Growth business. Growth AUM grew 51% YoY to Rs 57,601 crore. Growth to Legacy AUM mix has improved to 82:18 from 34:66 in FY22. Legacy (discontinued) AUM down 50% YoY to Rs 12,975 crore, down 70% since FY22. Retail to Wholesale AUM mix improved to 72:28 from 33:67 in FY22. Opex-to-AUM of Growth business down 104 bps YoY to 4.6% now. Consolidated GNPA at 2.7% with NNPA ratio at 1.1%. Reported a consolidated Profit After Tax (PAT) of Rs 181 crore. Net worth of Rs 26,863 crore with capital adequacy ratio at 24.4% on consolidated balance sheet Ajay Piramal, Chairman, Piramal Enterprises, said, “The Q1 FY25 results show two important trends that highlight our progress and strategy. First, our Growth business continues to build on the momentum established over the past two to three years, now representing the majority of our Assets Under Management (AUM) and net profit. Second, we continue to reduce our legacy discontinued AUM. Notably, in Q1 FY25, the decline of Rs 1,597 crore in legacy AUM had no impact on our profit and loss statement from credit costs. The expansion of our Growth business reflects our strategy to balance growth, risk and profitability as we develop these businesses. Our asset quality remains stable across retail and wholesale products. Further, our Opex-to-AUM - a key driver of profitability - is consistently decreasing We are also making progress in diversifying our borrowings. We successfully raised our first-ever $300 million dollar bond in July 2024, which received a 4X level of demand. We are pleased to see that the foundations for long term sustainable growth and earnings are firmly in place, and we anticipate that the upcoming quarters will demonstrate a consistent journey along this path.” Result PDF
Conference Call with Piramal Enterprises Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.