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Piramal Enterprises Board to Meet on Friday to Consider Issuing NCDs

Updated on: Dec 18, 2024, 1:35 PM IST
Piramal Enterprises' board to discuss NCD issuance on December 20; Q2 FY25 net profit up 238% YoY to ₹162.97 crore; shares fell 2.98% to ₹1,188.
Piramal Enterprises Board to Meet on Friday to Consider Issuing NCDs
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Non-bank lender Piramal Enterprises Ltd (PEL) has announced that its Administrative Committee will convene on Friday, December 20, 2024, to evaluate and potentially approve a public issuance of non-convertible debentures (NCDs). The company disclosed this decision in a regulatory filing submitted to stock exchanges.

Financial Performance

In Q2 FY25, Piramal Enterprises reported a 238% year-on-year (YoY) rise in consolidated net profit, reaching ₹162.97 crore compared to ₹48.19 crore in the same period last year. However, on a quarter-on-quarter (QoQ) basis, net profit declined by 10% from ₹181.45 crore in Q1 FY25.

Total revenue for the quarter stood at ₹2,080.43 crore, showing a 17% YoY growth from ₹1,778.32 crore in Q2 FY24. On a QoQ basis, revenue grew by 7.88%, showing movement in its business operations.

The company’s growth assets under management (AUM) surged by 45% YoY to ₹62,626 crore, while retail lending AUM rose by 42% YoY to ₹54,737 crore. Mortgage disbursements also climbed 39% YoY, totalling ₹4,653 crore.

Operational Metrics

Despite higher operating expenses, which increased 12% YoY to ₹741 crore, Piramal Enterprises achieved a 58% YoY growth in pre-provision operating profit (PPOP), which stood at ₹396 crore. Provisions for loan losses rose by 60% YoY to ₹317 crore during the quarter.

Stock Performance & Additional Updates

Shares of Piramal Enterprises slipped 3.17% to ₹1,186 at 11:19 AM on the BSE following the announcement but have gained over 27% year-to-date. Earlier this month, the company faced a ₹1.5 lakh penalty from the income tax department for the assessment year 2012-13, linked to its merger with Paramount Pharma Pvt. Ltd. The penalty was subsequently overturned by the Income Tax Appellate Tribunal.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 18, 2024, 1:35 PM IST

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