Piramal Enterprises Q4 Results : Firm posts profit of Rs 151 cr vs loss of Rs 510 crore

For the whole financial year 2021-22, it reported a 41 per cent jump in the net profit at around Rs 2,000 crore, it said in a release. During the year, Piramal enterprises completed its acquisition of distressed home financier – Dewan Housing Finance (DHFL).

“We will continue to make requisite investments in talent and technology, to strengthen our ability to tap the latent business opportunities in the Bharat market,” said Ajay Piramal, chairman at Piramal Enterprises in a release.

“We remain firmly on track to complete the demerger of the pharmaceuticals business by Q3 of FY23 and unlock significant value for our stakeholders,” he said.

Pharma business revenue rose 16 per cent year-on-year to Rs 6,701 crore.

The company’s overall assets under management expanded over 33 per cent year-on-year to Rs 65,185 crore with retail loans growing phenomenally. With DHFL getting merged it added firepower to retail credit

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Loans to individuals formed about two-thirds of the book with disbursements outpacing the industry average at 40-50 per cent CAGR in the past five years.

“Post the DHFL acquisition, we will now leverage our sizable retail lending platform to double our AUM over the next five years, thereby significantly improving our mix towards retail,” said the chairman.

The company made additional provisions against sticky assets, which is known as “Stage 2 Assets” in market parlance. Such an expected credit loss was pegged at Rs 817 crore compared to a reversal of Rs 77 crore provision in the corresponding quarter last year.