Leading diversified financial services company Piramal Enterprises Ltd on Friday posted nearly 94 percent year-on-year (YoY) decline in its net profit at Rs 509 crore, compared to Rs 8,155 crore in the corresponding quarter of last fiscal. However, on a sequential basis, the net profit jumped 160 percent from a net loss of Rs 196 crore for the quarter ending March 31, 2023.

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The Q1FY24 profit was led by a gain of Rs 855 crore on the sale of Shriram Finance Limited stake, the company said in a filing.

The company sold a 8.34 percent stake, equivalent to 3.12 crore shares of Shriram Finance Limited, for Rs 4,820 crore at Rs 1,545 per share.

The company's revenue from operations, meanwhile, surged 34 percent to Rs 2,899 crore as against Rs 2,161 crore in the same period a year ago.

Total Assets Under Management (AUM) stood at Rs 63,938 crore for the quarter under review, while retail lending grew to 55 percent of AUM,

from 34 percent in Q1 of FY23.

Retail AUM surged 57 percent YoY to Rs 34,891 crore; Quarterly retail disbursements grew 132 percent YoY to Rs 5,707 crore.

Piramal Enterprises has a strong consolidated net worth of Rs 30,844 crore with a capital adequacy ratio of 34.3 percent on consolidated balance sheet.

Cash and liquid investments stood at Rs 9,613 crore, 12 percent of total assets. Average borrowing cost for the June quarter reduced to 8.6 percent from 8.8 percent in the same quarter a year ago.

The gross non-performing assets or GNPA ratio has reduced to 2.8 percent from 3.8 percent in Q4 of FY23.

The net non-performing assets or NNPA ratio has reduced to 1.5 percent from 1.9 percent in the previous March quarter.

Board approves Rs 1,750 cr share buyback

Piramal Enterprises' board has approved a share buyback of up to 1,40,00,000 shares of face value Rs 10 each for an aggregate amount of Rs 1,750 crore. The company has set the buyback price at Rs 1,250 per share, which represents 5.87 percent of the total paid-up equity share capital of the company.

The buyback price was at a 16.51 percent premium over Friday's closing price of Rs 1,072.80 for the counter.

The company has fixed Friday, August 25, as the record date for the proposed buyback.

"The administrative committee of the board of directors of the company has been empowered to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback," Piramal Enterprises said.

The buyback size does not include transaction costs such as brokerage, filing fees, legal fees, public announcement publication expenses, printing and dispatch expenses, applicable taxes such as buyback tax, securities transaction tax, good and service tax, stamp duty, and other incidental and related expenses.

First Published:Jul 28, 2023 4:10 PM IST