Piramal Finance (PIRAMALFIN) Q4 20/21 earnings summary

Executive summary

• FY21 ended with a standalone net loss of ₹15,051.12 crore, driven mainly by a ₹25,990.33 crore net fair-value loss and ₹2,244.77 crore of impairment charges.

• A resolution plan was approved by NCLT on June 7, 2021; the merger took effect September 30, 2021, and the legal name changed November 3, 2021.

• The November 30 AGM agenda included adoption of FY21 audited statements, director appointments, a three-year managing director appointment and authority for private-placement NCDs.

Financial highlights

• Standalone income was ₹8,802.79 crore vs ₹9,343.12 crore in FY20; loss before tax was ₹20,117.05 crore vs ₹18,247.99 crore, and net loss was ₹15,051.12 crore vs ₹13,612.32 crore.

• Consolidated revenue was ₹8,802.79 crore vs ₹9,578.85 crore; expenses were ₹28,919.89 crore vs ₹27,641.37 crore, and net loss was ₹15,051.17 crore vs ₹13,426.85 crore.

• Standalone interest income was ₹8,719.00 crore vs ₹9,232.25 crore; finance costs fell to ₹218.49 crore from ₹5,725.18 crore, reflecting the CIRP-period interest treatment.

• No equity dividend was recommended for FY21 due to the loss; no transfer was made to reserves.

Outlook and guidance

• Management expected governance, control, IT, lending-policy and risk-process initiatives to improve operational efficiency once completed; COVID-19 restrictions delayed parts of the work.

• After plan implementation, a regulatory capital-compliance roadmap was to be submitted; the RBI had allowed this roadmap to follow implementation of the resolution plan.