“The strong (consolidated) profit growth this year is mainly driven by our retail activities, which registered a growth of 37% in AUM, the credit costs fell while the margins improved,” Jairam Sridharan, director of Piramal Enterprises, told ET.
In itself, however, it reported a 39% decrease in net profit to RS 181 Crore due to a decrease in interest income from 19% – to RS 396 Crore.
The assets of the company in control was RS 85,756 Crore, an increase of 22% year on year, while the net interest rate margin of the NBFC rose by 10 basic points to 5.9%.
“We have not yet benefited from the REPO rate announced by the central bank. The effects are just starting to show at the end of the quarter, but our margins are not influenced by the cuts and are expected to improve in the following quarter,” Sridharan said.
The assets of the non-bank financing company are currently on RS 27,174 Crore. The share of the retailing book was 81% at RS 69,000 Crore, with a product mix of housing, personal, business and used car loans. Of these, 66% of the retail book in affordable home loans and loans against real estate is. Piramal’s Legacy Book has also been reduced to only 7%, making it room for new loan growth, Sridharan said. Almost 15% of the book is in the form of uncovered loans. The gross non-performing assets from Piramal (NPA) are 2.8%, with a net NPA with 2%.
The company expects to complete the merger of pyramal financing with itself in September this year.
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