Piramal Enterprises (PEL) Q1 24/25 earnings summary

Executive summary

• Total AUM rose 10% year-on-year to INR 70,576 crore, with Growth AUM up 51% year-on-year to INR 57,601 crore, now comprising 82% of total AUM.

• Retail AUM grew 43% year-on-year to INR 50,530 crore; Wholesale 2.0 AUM increased 132% year-on-year to INR 7,071 crore.

• Legacy (discontinued) AUM declined 50% year-on-year to INR 12,975 crore, now 18% of total AUM, with a target to reduce below 10% by FY2025 end.

• Consolidated net profit after tax for Q1 FY2025 was INR 181 crore.

• Net worth at INR 26,863 crore; capital adequacy ratio at 24.4%.

Financial highlights

• Net interest income up 34% year-on-year to INR 900 crore; fee income stable at INR 97 crore.

• Pre-provision operating profit increased 48% year-on-year to INR 375 crore.

• Gross credit cost (excluding recoveries) was 1.6% in Q1 FY2025, compared to 2.1% in Q1 FY2024 (adjusted for one-time ECL policy change).

• Operating profit for growth business rose 48% year-on-year to INR 375 crore.

• Consolidated tax rate at 27.6%; GNPA and NNPA at 2.7% and 1.1% respectively.

Outlook and guidance

• Management expects further moderation in OpEx to AUM, targeting 3.5%-4% in the medium term.

• Guidance maintained for INR 1,200 crore AIF gains in FY2025.

• Legacy AUM expected to fall below 10% of total AUM by FY2025.

• Targeting ~15% AUM growth for FY25; Retail:Wholesale AUM mix expected to reach 75:25 by FY25 exit.

• Profitability targets: ROA of 3.0–3.3% by FY28E.