Piramal Enterprises plunges over 10% after Q1 net profit declines 64% YoY; check details

Piramal Enterprises shares dropped over 10% on the NSE on Wednesday, August 14, after a sharp drop in net profit for the quarter ended June 2024.

The non-bank finance company (NBFC) released its Q1 results after market hours on Tuesday. The company reported a 64% year-on-year (YoY) drop in its net profit at ₹181.48 crore in the June quarter, compared to ₹508.78 crore in the same period of the last financial year.

The company said in a stock exchange filing that the profit drop was mostly due to a high base effect from a one-off item last year.

Piramal Enterprises’ total consolidated revenue from operations declined 26% YoY to ₹2,122.80 crore from ₹2,877.97 crore a year ago.

However, the Piramal Group flagship showed an improvement in assets and net interest income.

Its Total Assets Under Management (AUM) grew 10% YoY to ₹70,576 crore. The net interest income (NII) increased by 18% to ₹807 crore, while the net interest margin (NIM) fell to 6.7% from 7.3% during the same quarter a year ago.

Piramal Enterprises Chairman Ajay Piramal said, “The Q1FY25 results show two important trends that highlight our progress and strategy. First, our growth business continues to build on the momentum established over the past two to three years, now representing the majority of our Assets Under Management (AUM) and net profit. Second, we continue to reduce our legacy discontinued AUM.”

Piramal Enterprises shares are trading 10.44% lower at ₹882.5 apiece on the NSE at 11:30 am.