Piramal shares rise 3% after promoter entity hikes stake by 0.27%

Following the purchase, the promoter group's shareholding in the company has increased from 46.03% to 46.30%.

Meanwhile, the company also notified that its board of directors will meet on August 21, 2024, to consider and approve the issue of secured, rated, listed, redeemable, non-convertible debentures of up to ₹150 crore.

During the first quarter of fiscal year 2025, the company reported an 18% year-over-year (YoY) rise in its net interest income to ₹807 crore. Total income rose 9% YoY to ₹973 crore during the quarter.

Pre-provisioning operating profit (PPOP) rose 3% YoY to ₹270 crore during the year. Net profit declined 64% YoY to ₹181 crore during the quarter.

The firm’s total assets under management (AUM) grew 10% YoY to ₹70,576 crore, led by its growth business.

Ajay Piramal, Chairman, Piramal Enterprises said the first quarter results show two important trends that highlight the firm’s 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. Notably, in Q1FY25, the decline of ₹1,597 crore in legacy AUM had no impact on our profit and loss statement from credit costs,” he said.

In the company’s retail lending business, its quarterly disbursements grew 19% YoY to ₹6,816 crore. Mortgage disbursements grew 22% YoY to ₹3,354 crore. Disbursement yields rose 40 basis points (bps) quarter-over-quarter to 14.2%. In the wholesale lending business, disbursements grew 9% QoQ to ₹1,572 crore. During the quarter, the firm signed its maiden US dollar syndicated social loan of $100 million.

Shares of the company rose over 4% since the beginning of the year. The stock has lost over 8% in the last one year.