Piramal Enterprises Reports 64% Drop In Net Profit in Q1FY25
The company’s profit after tax (Pat) stood at Rs 181 crore in the first quarter of financial year 2025 as compared to Rs 509 crore in Q1FY24
Continuing to build on the momentum established in the past two to three years, Piramal Enterprises, a non-banking financial company, has reported a 10 per cent year-on-year (YoY) growth in total assets under management (AUM). As per the consolidated results for the first quarter of the current financial year (Q1FY25), the company has posted a net profit of Rs 181 crore, registering a 64 per cent YoY drop.
The company’s profit after tax (Pat) stood at Rs 181 crore in Q1FY25 as compared to Rs 509 crore in Q1FY24. The profit before tax witnessed an even bigger drop of 79 per cent on a YoY basis. It dropped from Rs 661 crore in Q1FY24 to Rs 137 crore in Q1FY25.
The total income increased by nine per cent YoY basis, taking the number from Rs 891 crore in Q1FY24 to Rs 973 crore in Q1FY25. The operating expenses (Opex) of the company grew by 12 per cent YoY as it increased from Rs 628 crore in Q1FY24 to Rs 703 crore in Q1FY25.
As far as the AUM is concerned, the total AUM of the company grew to Rs 70,576 crore, led by the growth business. The growth AUM grew to Rs 57,601 crore, witnessing a 51 per cent YoY increase. The retail AUM registered a 43 per cent YoY growth to reach Rs 50,530 crore, while the legacy (discontinued) AUM dropped to Rs 12,975 crore, down by 50 per cent YoY.
The company’s quarterly disbursements grew by 19 per cent on a YoY basis to Rs 6,816 crore. The disbursement yields increased by 40 basis points on a quarter-on-quarter basis to 14.2 per cent.
Ajay Piramal, Chairman, Piramal Enterprises 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 added that in Q1 FY25, the decline of INR 1,597 crore in legacy AUM had no impact on our profit and loss statement from credit costs.
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