Piramal Finance (PIRAMALFIN) Q4 21/22 earnings summary

Executive summary

• FY22 results reflect the September 2021 DHFL acquisition and reverse merger; current-year figures include six months of acquired operations and are not directly comparable with FY21.

• Loan book reached ₹55,104 crore, with retail lending at ₹21,040 crore or 41% of the book; management shifted focus to sustainable growth, risk control and profitability.

• Standalone profit after tax was ₹525.75 crore, down from ₹1,034.44 crore in FY21; additional provisioning and merger-related costs weighed on earnings.

Financial highlights

• Standalone total income was ₹6,186.92 crore versus ₹5,087.90 crore in FY21; operating revenue was ₹6,120.81 crore versus ₹5,081.65 crore, primarily reflecting the acquisition.

• Standalone PBT was ₹713.98 crore versus ₹1,540.23 crore; PAT was ₹525.75 crore versus ₹1,034.44 crore, with the periods affected by the merger and increased credit costs.

• Consolidated FY22 total income was ₹6,186.95 crore; PBT was ₹728.38 crore, including ₹142.72 crore of merger transaction costs, and PAT was ₹540.15 crore.

• Consolidated EPS was ₹0.22; standalone EPS was ₹0.25 versus ₹0.48 in FY21.

Outlook and guidance

• Phase III priorities are sustainable growth and profitability, balancing growth, risk and returns after completing DHFL integration.

• Priorities include growing retail share, reducing borrowing costs through diversified funding, optimising capital utilisation and maintaining provisions for contingencies.

• Profitability is expected to benefit over the medium to long term from better capital utilisation and loan-book growth; cost of borrowings is expected to decline as the book becomes more diversified and granular.