Piramal Enterprises Q2FY25 Results: Growth Trajectory Continues
Piramal Enterprises reported strong Q2FY25 results, driven by significant growth in its core businesses. The company highlighted its strategic focus on expanding its presence in the financial services sector, evident in its impressive AUM growth and improved asset quality.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
Robust AUM Growth Driven by Growth Business
Piramal Enterprises witnessed a 12% YoY increase in its Total Assets Under Management (AUM), reaching Rs 74,692 crore.
1
Growth Business Leads
This growth was primarily fueled by the exceptional performance of its Growth business, which now constitutes 84% of the total AUM, compared to 34% in FY22.
2
Significant Increase
The Growth AUM segment experienced a remarkable 45% YoY surge, reaching Rs 62,626 crore.
3
Legacy AUM Declines
Conversely, the Legacy (discontinued) AUM decreased by 49% YoY to Rs 12,066 crore, marking a substantial 72% reduction since FY22.
Focus on Profitability and Efficiency
4.5%
Opex-to-AUM
The company has successfully reduced the operating expense ratio for its Growth business by 80 basis points YoY.
Strong Asset Quality and Capital Adequacy
GNPA and NNPA
Piramal Enterprises boasts a consolidated Gross Non-Performing Assets (GNPA) ratio of 3.1%, with a Net NPA ratio of 1.5%, indicating robust asset quality.
Capital Adequacy
The company maintains a strong capital adequacy ratio of 23.3% on its consolidated balance sheet, well above regulatory requirements.
Profitability and Financial Strength
Piramal Enterprises reported a consolidated Profit After Tax (PAT) of Rs 163 crore for Q2FY25.
The company's net worth stands at a healthy Rs 26,930 crore, reflecting its strong financial position.
Strategic Outlook and Future Growth
1
Legacy AUM Reduction
Piramal Enterprises is committed to further reducing its legacy AUM, aiming to reach below 10% of total AUM by March 2025.
2
Growth Business Expansion
The company has a strong track record of success in its Growth businesses, which are well-positioned for continued expansion.
3
Strategic Partnerships and Acquisitions
Piramal Enterprises is actively pursuing strategic partnerships and acquisitions to strengthen its position in the market and expand its reach.
4
Commitment to Innovation and Technology
Piramal Enterprises is investing in digital platforms and solutions, providing a seamless and efficient customer experience.
5
Sustainability and ESG Principles
The recent issuance of a green bond demonstrates the company's commitment to sustainability and alignment with global ESG principles and responsible investment practices.
With a strong foundation, a clear vision, and a commitment to growth, Piramal Enterprises is well-positioned to achieve its strategic objectives and create long-term value for its stakeholders.
Sustainability Bond Underscores Investor Confidence
In October 2024, Piramal Enterprises successfully raised an additional USD 150 million through a Sustainability Bond.
The bond issuance was oversubscribed 3.5 times, reflecting strong investor confidence in the company's vision for sustainable and responsible growth.
Commitment to Innovation and Long-Term Value Creation
Investing in Technology
Piramal Enterprises is driving innovation and efficiency through investments in technology and digital solutions. Advanced analytics and data science are being leveraged to enhance risk management, customer experience, and operational efficiency.
Fostering a Culture of Excellence
Beyond technology, Piramal fosters a culture of excellence through a collaborative and inclusive work environment. The company empowers its employees and invests in their development to build a strong and resilient workforce.