Conference Call with Piramal Enterprises Ltd (PEL) Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Non-banking Financial company Piramal Enterprises announced Q1FY24 results: Total AUM remains stable at Rs 63,938 crore, while Retail to Wholesale AUM mix improved to 55:45. PAT for Q1FY24 stood at Rs 509 crore, led by a gain of Rs 855 crore on the sale of Shriram Finance Limited's stake. Sold 8.34% stake (3.12 crore shares) of Shriram Finance Limited for Rs 4,820 crore at Rs 1,545 per share. Consolidated net worth of Rs 30,844 crore with a Capital Adequacy Ratio of 34.3% on the consolidated balance sheet. Cash and liquid investments of Rs 9,613 crore (12% of Total Assets). Average borrowing cost for Q1FY24 reduced to 8.6% from 8.8% in Q1FY23. GNPA ratio reduced to 2.8% from 3.8% in Q4FY23. NNPA ratio reduced to 1.5% from 1.9% in Q4FY23. Ajay Piramal, Chairman, Piramal Enterprises, said, “In line with our consistent focus on long-term value creation for stakeholders and effective utilisation of capital, the Board of Directors of the company is pleased to announce the buyback of equity shares of the company. The promoter and promoter group shall not participate in the buyback. This capital allocation strategy aims to combine investing in our core business and returning excess capital to shareholders. Our Q1 performance is in line with our endeavour towards building a large diversified non-banking financial company. In the mid to long term, we aim to have a retail lending account for two-thirds of our assets, reflecting our strategic focus. In Retail lending, we have achieved sustained growth in the retail sector, fulfilling the credit needs of the "Bharat" market through our technology-led multi-product franchise. This business now contributes to 55% of our AUM. While we actively expand our retail lending business, we are simultaneously investing in human resources, branch infrastructure, technology, and analytics to ensure its future growth. In Wholesale lending, we are capitalizing on market gaps and leveraging our strengths to build the new cash flow and asset-backed Wholesale 2.0 book across real estate and corporate mid-market lending. We have reduced our Wholesale 1.0 AUM by 38% YoY. Our Stage 2 + 3 AUM has reduced by 34% QoQ and we are focused on further bringing these down.” Result PDF