Piramal Enterprises Aims to Increase AUM to Rs. 80,000 Crore by FY25-End

Piramal Enterprises Ltd. recently announced that it is set to boost its growth rate to 15% and expand its Assets Under Management (AUM) to Rs.80,000 crore by the end of FY25. The company recorded an 8% increase in its AUM at a consolidated level in FY24.

Retail Loans

Currently, 70% of Piramal’s AUM is retail loans, which the company labels as its “growth business.” This segment surpassed the Rs.50,000 crore milestone recently. By the end of FY28, the company aims to nearly double its overall AUM to Rs.1.5 lakh crore, with the retail loan share projected to increase to 75%. This will be done to expand the company’s retail lending portfolio. Despite a significant reduction in its wholesale business, Piramal Enterprises had decided to now focus on overall AUM growth. 

Financial Setback

In FY24, Piramal Enterprises reported a loss of Rs.1,684 crore, primarily due to provisions made for investments in alternative investment funds. However, Piramal expressed confidence in recovering these provisions, as evidenced by the financial results for Q4FY24. The chairman assured that the growth business is “on track” to achieve profitability, despite financial setbacks. Piramal Enterprises conducted a share buyback worth Rs.1,750 crore in FY24, aligning funds with core businesses and returning excess capital to shareholders. 

Expansion and Technology 

The company is constantly updating its presence in Tier II and Tier III cities with a multi-product branch network, positioning itself for growth along with leveraging technology and analytics to drive its expansion. This focus on digital integration is expected to optimize the overall work and support the company’s targets.

Conclusion: Overall, Chairman Ajay Piramal has reflected confidence in overcoming challenges and steering towards a better future. The company’s focus on retail loans and careful management of its wholesale business are key drivers for achieving these targets. As Piramal Enterprises aims to increase its AUM and focus on retail loans, it is positioning itself for expansion and growth. 

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.