Piramal Enterprises posts Rs 151 crore net profit in Q4

The company will continue to make required investments in talent and technology. After the DHFL acquisition, Piramal plans to leverage its retail lending platform to double the AUM over the next five years.

piramal enterprises
Piramal Enterprises said it has re-evaluated its wholesale portfolio to detect any lasting impact of the pandemic or recent stress in the macro economy on its clients.

Piramal Enterprises (PEL) has posted a consolidated net profit of Rs 151 crore for the quarter ended March 31, compared with a net loss of Rs 510 crore recorded during the same period a year ago.

The diversified group with presence in financial services and pharmaceuticals had a tax impact Rs 218 crore in the previous year-ago quarter, which was at Rs 24 crore in Q4 this year.

During the quarter under review, the firm’s total income on a consolidated basis rose 23% to Rs 4,401 crore, compared with Rs 3,566 crore recorded during the same year-ago period. For the 12-month-period ended March, PEL’s net profit rose 41% to Rs 1,999 crore (Rs 1,413 crore in comparable year-ago period) on revenues of Rs 14,713 crore (Rs 13,173 crore).

“We have delivered a resilient performance in the fourth quarter and FY22 across financial services and pharmaceuticals, against the backdrop of the pandemic and macro-economic headwinds. In financial services, we completed the integration with DHFL and achieved 100% quarter-on-quarter growth in retail loan disbursements in Q4 of FY22,” PEL Chairman Ajay Piramal said.

“We have re-activated almost all the branches and not only retained over 3,000 employees of the DHFL, but also created over 3,000 new jobs in the merged entity across India. 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. Post the DHFL acquisition, we will now leverage our sizable retail lending platform to double our assets under management over the next 5 years, thereby significantly improving our mix towards retail,” he added.

The company’s board has recommended a dividend of Rs 33 per share, following which the total dividend pay-out would be Rs 788 crore.

PEL financial services’ assets under management (AUM) rose 33% year-on-year to Rs 65,185 crore as of March, while the share of retail in the overall loan book rose to 36%. The retail loan book rose 306% year-on-year to Rs 21,552 crore. The firm acquired 1.32 lakh customers in the fourth quarter of FY22.

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