Total income grew by 17.97% to Rs 2,528.16 crore in Q4 FY24 as compared with Rs 2,143.02 crore recorded in corresponding quarter last year.
Net interest income (NII) jumped 18% year on year to Rs 755 crore during the quarter.
Pre-provision operating profit (PPOP) was at Rs 293 crore in Q4 FY24, down 37% from Rs 466 crore reported in Q4 FY23.
Total assets under management (AUM) were up 8% YoY, led by the company’s growth business. Retail AUM jumped 49% YoY to Rs 47,927 crore in Q4 FY24.
Disbursements grew 30% YoY to Rs 7,692 crore during the period under review.
The NBFC’s net worth stood at Rs 26,557 crore with capital adequacy ratio at 25.6% on consolidated balance sheet.
In FY24, the company reported a net loss of Rs 1,683.53 crore as against a net profit of Rs 9,968.58 crore recorded in FY23. Total income 12.01% YoY to Rs 10,178.36 in FY24.
Ajay Piramal, chairman of Piramal Enterprises, said, “With the intent of further simplifying our group structure and creating a stronger, more flexible entity that enhances value for all stakeholders, the Board of Directors has approved PEL’s merger with its subsidiary, Piramal Capital & Housing Finance, subject to regulatory approvals.
Over the past two to three years, our company has undergone a significant transformation, reshaping both its business operations and long-term strategy. This transformation gained further momentum in FY24. Specifically, our growth business, which includes Retail Lending and Wholesale 2.0, witnessed substantial expansion during this period.
We made progress across key areas, including AUM growth, business mix optimization and moderation in Op-Ex ratios. In this quarter there was meaningful reduction in our legacy business AUM and this process should largely conclude in the current year. This acceleration has been associated with some credit costs. However, profit in our growth business and other gains in the P&L have supported the profitability in 4Q FY24.
We remain focused on optimizing operating leverage in the growth business and reducing the contribution of the legacy business as quickly as possible. Having navigated through this transformative journey, we are encouraged by the strengthening performance of our new businesses. We are optimistic that that the lingering effects of our legacy challenges should largely fade away this year.”
Meanwhile, the firm’s board recommended a dividend of Rs 10 per equity share for the financial year 2023-24.
Piramal Enterprises (PEL) is a leading diversified NBFC in India with a presence across retail lending, wholesale lending, and fund-based platforms. The company has investments and assets worth around $10 billion, with a network of branches across 25 states/UTs.
The scrip declined 5.18% to currently trade at Rs 842.95 on the BSE.