Piramal Enterprises Limited announces consolidated results for Q2 and H1 FY2023. It completed the demerger of Piramal Pharma. Reporting first quarterly results for PEL as a listed RBI-regulated NBFC. The retail business was at 62% q-o-q and 8x y-o-y growth in disbursements to INR 3,973 Cr.; 12% YoY growth in the retail loan book.
Created additional provisions and fair value adjustment of Rs 3,311 Cr. on assets during the quarter. Net loss of INR 1,536 Cr. during the quarter, as compared with Rs 395 Cr. of re-computed net profit for Q2 FY22 for the demerged FS entity.
The company’s R 5,888 Cr of wholesale assets moved from Stage 1 to Stage 2, largely completing the asset recognition cycle; well provided for Stage 2 and Stage 3 Assets. A strong balance sheet with equity of Rs 27,472 Cr.; Cash and cash equivalent of Rs 6,984 Cr.
Ajay Piramal, Chairman, Piramal Enterprises Ltd. said, “This quarter marks the successful and time-bound demerger of the Pharma business, creating two sector-focused entities in Financial Services and Pharma.
On Retail lending business, we successfully completed our 1-year milestone of the DHFL acquisition, delivering robust growth on most key parameters. Our size now places us in a dominant position amongst large NBFCs in India. The retail lending business continues to grow faster than our earlier guidance, taking us closer to our aspirations of becoming a more retail-oriented NBFC.
In the wholesale lending business, we have largely completed our asset recognition cycle and are well provided on Stage 2 and Stage 3 loans. We are focused on making the Wholesale book more granular and with an increased focus on recoveries/ monetization, we expect the wholesale book size to moderate in the short term. Further, we are also investing to build a cashflow & asset-backed real estate and mid-size corporate lending business.
Our balance sheet remains strong with a capital adequacy ratio of 23% and an equity base of INR 27,472 Cr. in Q2 FY23. In addition, there are significant pockets of value embedded in our balance sheet, where we expect value unlocking to take place in the coming few quarters. We will continue to work towards creating long-term?value for our stakeholders.”
