In Wednesday’s trading session, the shares of a leading diversified retail-led NBFC slumped by 11.2 percent to hit an intraday low at Rs. 875.05, after reporting financial results for Q1 FY24-25 with a decline in the net profit of 64.3 percent YoY.
With a market capitalisation of Rs. 19,931 crores, at 11:37 a.m., the shares of Piramal Enterprises Limited (NS:PIRA) were trading in the red at Rs. 887.85, down by nearly 10 percent, as against its previous closing price of Rs. 985.7.
Is Piramal Enterprises a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25, through the recent filings with the stock exchanges on Wednesday post-market hours.
The total revenue from operations for Q1FY25 stood at Rs. 2,123 crores, marking a 26.3 percent YoY decline from Rs. 2,878 crores in Q1FY24, as well as a 14.2 percent fall quarter-on-quarter from Rs. 2,473.3 crores in Q4 FY24.
The net profit slumped by 64.3 percent YoY to Rs. 181.5 crores in Q1FY25, as against Rs. 509 crores in Q1FY24, while on a quarter-on-quarter basis, it increased by 32.5 percent from Rs. 137 crores in Q4FY24.
Piramal Enterprises saw a 10 percent YoY increase in its total Assets Under Management (AUM), reaching Rs. 70,576 crores, led by growth in its Retail and Wholesale 2.0 segments. Retail AUM, which constitutes 72 percent of the total AUM, surged by 43 percent YoY to Rs. 50,000 crores.
In Q1FY25, the company’s net interest income (NII) grew by 18 percent, rising to Rs. 807 crores from Rs. 681 crores in Q1FY24, while the other income increased by 33 percent to Rs. 58 crores.
However, the net interest margin (NIM) decreased to 6.7 percent in Q1FY25 from 7.3 percent in the same period of the previous year.
During the quarter, the company recorded an exceptional gain of Rs. 104 crores from gross AIF recoveries. However, disbursements were impacted by regulatory changes imposed by the RBI regarding fair practices in June quarter.
Looking ahead, the company’s chairman expressed confidence in achieving the FY25 target of a 15 percent AUM growth, aiming to reach Rs. 80,000 crores.
Stock Performance
The shares of Piramal Enterprises have delivered negative returns of nearly 14.3 percent in one year as well as around 6 percent returns year-to-date.
About the Company:
Piramal Enterprises Limited is an RBI-registered NBFC engaged in the business of providing diversified financial services with a prominent presence across retail lending, wholesale lending, alternatives and life insurance.
Written by Shivani Singh
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