Conference Call with Piramal Enterprises Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.
Finance company Piramal Enterprises announced Q2FY23 results: Consolidated Q2FY23: Total AUM grew 35% since pre-merger to Rs. 63,780 crore. Retail loan book now accounts for 43% of overall loan book vs 12% pre-merger. Revenues grew 37% on a YoY basis to Rs. 997 crore., primarily on account of the DHFL acquisition as well as healthy growth in our retail lending business. The stable GNPA ratio stood at 3.7% with the NNPA ratio at 1.3%. Provisions as % of wholesale AUM increased to 13.1% from 8.8% last quarter. Capital Adequacy Ratio of 23% in Q2 FY23. Created additional provision and fair value adjustment of Rs. 3,311 crore. on assets during the quarter. Net loss of Rs 1,536 crore. during the quarter, as compared with Rs. 395 crore. of re-computed net profit for Q2 FY22 for the demerged FS entity. Rs. 5,888 crore of wholesale assets moved from Stage 1 to Stage 2, largely completing asset recognition cycle; well provided for Stage 2 and Stage 3 Assets. A strong balance sheet with equity of Rs. 27,472 crore.; Cash and cash equivalent of Rs. 6,984 crore. Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “This quarter marks the successful and time bound demerger of the Pharma business, creating two sector focused entities in Financial Services and Pharma. On Retail lending business, we successfully completed our 1-year milestone of the DHFL acquisition, delivering robust growth on most key parameters. Our size now places us in a dominant position amongst large NBFCs in India. Retail lending business continues to grow faster than our earlier guidance, taking us closer to our aspirations of becoming a more retail oriented NBFC. In the Wholesale lending business, we have largely completed our asset recognition cycle and are well provided on Stage 2 and Stage 3 loans. We are focused on making the Wholesale book more granular and with increased focus on recoveries/ monetization, we expect the wholesale book size to moderate in the short term. Further, we are also investing to build a cashflow & asset backed real estate and mid-size corporate lending business. Our balance sheet remains strong with capital adequacy ratio of 23% and an equity base of INR 27,472 Cr. in Q2 FY23. In addition, there are significant pockets of value embedded in our balance sheet, where we expect value unlocking to take place in coming few quarters. We will continue to work towards creating long-term value for our stakeholders.” Result PDF