Piramal Enterprises Ltd (PEL) reported a consolidated net loss of Rs 196 crore in the fourth quarter against a net profit of Rs 151 crore in the prior-year quarter, led by a market value loss of Rs 375 crore in Shriram’s investments.
The company’s consolidated results include the number of subsidiaries such as Piramal Capital & Housing Finance, Piramal Asset Management, Piramal Consumer Products and joint ventures such as Pramerica Life Insurance and India Resurgence ARC.
The PEL Board has recommended a final dividend of Rs 31 per capital share of par value Rs 2 each for the fiscal year ending 31 March 2023.
Net interest income decreased 4% yoy to ₹1,128 crore (₹1,172 crore). Other income fell 88 percent to ₹11 crore (₹92 crore).
Operating expenses rose 52 percent to ₹674 crore (₹443 crore). Provisions for credit losses decreased 72 percent to ₹298 crore (₹1071 crore).
Assets under management decreased by around 2 percent to ₹63,989 crore (₹65,185 crore as of end-March 2022). Within this, retail AUMs rose 49 percent to ₹32,144 crore (₹21,552 crore).
The mix of retail (which includes home loans, property loans, unsecured loans and used car loans) and wholesale (developer loans) AUM stood at 50:50 versus 33:67 a year ago.
Ajay Piramal, Chairman of PEL, said: “In Retail, we have achieved substantial growth and this business now contributes 50 per cent of our AUM. We are consciously shifting to a technology-led, multi-product strategy to continue building a large, diversified NBFC.”
Jairam Sridharan, Managing Director, Piramal Capital and Housing Finance, expects the retail to wholesale AUM mix to be 66:34 over the medium term.