Piramal Enterprises (PEL) Q1 24/25 earnings summary

Executive summary

• Total AUM grew 10% year-on-year to INR 70,576 crore, with Growth business AUM up 51% YoY to INR 57,601 crore, now 82% of total AUM, while legacy AUM declined 50% YoY to INR 12,975 crore, now 18% of total AUM.

• Consolidated PAT for Q1 FY25 was INR 181 crore, with net worth at INR 26,863 crore and capital adequacy at 24.4%.

• Opex-to-AUM for Growth business reduced by 104 bps YoY to 4.6%.

• GNPA at 2.7% and NNPA at 1.1%, reflecting stable asset quality.

• Unaudited standalone and consolidated financial results for Q1 FY25 were approved and published, with compliance confirmed by joint statutory auditors.

Financial highlights

• Interest income rose 17% YoY to INR 2,011 crore; net interest income up 18% YoY to INR 807 crore.

• Pre-provision operating profit up 3% YoY to INR 270 crore; loan loss provisions and FV loss/gain at INR 133 crore, down from INR 179 crore YoY.

• Retail AUM grew 43% YoY to INR 50,530 crore; Wholesale 2.0 AUM up 132% YoY to INR 7,071 crore.

• Retail disbursements in Q1 were INR 6,816 crore, up 19% YoY; mortgage AUM up 37% YoY to INR 34,104 crore.

• Reported net profit after tax dropped 64% YoY to INR 181 crore, impacted by lower exceptional gains.

Outlook and guidance

• Management targets legacy AUM to fall below 10% of total AUM by FY2025 end and expects ~15% AUM growth in FY25.

• Profitability targets include ROA of 3.0–3.3% by FY28E, supported by assessed carry-forward losses of INR 10,627 crore.

• OpEx to AUM in retail expected to moderate to 3.5%-4% in the medium term.

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

• Board approved a Composite Scheme of Arrangement with a subsidiary, subject to regulatory and shareholder approvals.