Piramal Enterprises (PEL) Q4 23/24 earnings summary

Executive summary

• Growth AUM rose 55% YoY to INR 54,273 Cr, reaching 79% of total AUM; the legacy book fell 50% YoY to INR 14,572 Cr.

• FY24 consolidated loss after tax was INR 1,684 Cr, including a net AIF provision of INR 2,473 Cr; Q4 PAT was INR 137 Cr after Shriram stake-sale and tax-related gains.

Financial highlights

• Consolidated FY24 total income was INR 3,971 Cr, down 21% YoY; PPOP was INR 1,197 Cr, down 58% YoY.

• Consolidated FY24 reported net loss was INR 1,684 Cr versus net profit of INR 9,969 Cr in FY23; Q4 reported net profit was INR 137 Cr.

• Growth-business FY24 NII rose 50% YoY to INR 3,065 Cr; fee income increased 101% to INR 570 Cr and PPOP increased 63% to INR 1,411 Cr.

• Growth-business FY24 PBT rose 39% YoY to INR 1,044 Cr; credit cost was 0.9% versus 0.4% in FY23.

Outlook and guidance

• FY25 total AUM is guided to ~INR 80,000 Cr, up ~15% YoY; legacy AUM is expected below INR 6,000–7,000 Cr and under 10% of total AUM.

• FY28 guidance: AUM ~INR 150,000 Cr, implying 21% CAGR from FY24; retail:wholesale mix 75:25 and ROA target unchanged at 3.0–3.3%.

• Potential AIF gains are estimated at ~INR 1,200 Cr in FY25 and ~INR 500 Cr in FY26; INR 10,627 Cr of assessed carry-forward losses are available from FY25.

• Proposed merger completion is expected to take 9–12 months, subject to regulatory and statutory approvals.