Piramal Enterprises, the financial services arm of the Piramal Group, on Wednesday, reported a 300 percent year-on-year (YoY) jump in net profit at Rs 3,547 crore for the third quarter that ended December 31, 2022. In the corresponding quarter last year, the company had posted a net profit of Rs 888 crore.

According to the company, Rs 3,328 crore on account of the reversal of Income Tax provision and Rs 1,106 crore on account of the restructuring of Shriram Capital group and bond buyback, lead to gains in Profit After Tax.

Its revenue from operations stood at Rs 3,231.6 crore during the period under review, up 41.4 percent against Rs 2,285.2 crore in the corresponding period of the preceding fiscal.

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At the operating level, EBITDA jumped 50.2 percent to Rs 993.6 crore in the third quarter of this fiscal over Rs 1,994.6 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 30.7 percent in the reporting quarter as compared to 87.3 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Piramal Enterprises' total assets under management (AUM) stood at Rs 64,867 crore and retail lending grew to 43 percent of AUM, from 33 percent in the corresponding period of the preceding fiscal.

The gross NPA ratio stood at 4.0 percent with the net NPA ratio at 1.7 percent. The total provisions as a % of total AUM now stood at 10 percent in the third quarter against 8.6 percent in the corresponding period of the preceding fiscal.

For a retail business, the company recorded 29 percent quarter-on-quarter and 593 percent year-over-year growth in disbursements to Rs 5,111 crore.

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Ajay Piramal, chairman of Piramal Enterprises said the third quarter performance is in line with the company's commitment towards building a large diversified NBFC, with retail lending comprising 2/3rd of the assets in the mid to long term.

"In wholesale, we have created a one-time additional provisioning buffer during the quarter and are now adequately provided towards Wholesale 1.0. AUM. Simultaneously, we are focused on building the new cash flow/asset-backed Wholesale 2.0 book across the real estate as well as corporate mid-market lending, by capitalising on the market gap and leveraging our strengths," he added.

First Published:Feb 8, 2023 7:18 PM IST