Piramal Enterprises notes 32.12% slump in net profit at Rs 426.49 cr

On Thursday, Piramal Enterprises recorded a 32.12% dip in consolidated net profit at Rs 426.49 crore for the quarter ended September, majorly on account of a drop in sales in the financial services sector and a one-time charge associated with a transaction fee for DHFL purchase. In a regulatory filing, Piramal Enterprises said that the firm had recorded a net profit of Rs 628.31 crore for a similar term of the preceding fiscal. Consolidated income from operations reached Rs 3,105.52 crore for the quarter under consideration. It was Rs 3,301.84 crore for the corresponding period a year before, it added. The second quarter of FY22 was transformational for our firm and majorly improved the foundation to encourage future growth. Piramal Enterprises Chairman, Ajay Piramal, told the media that they executed the acquisition and merger of DHFL successfully, and the total AUM has increased 42% Q-o-Q (quarter-on-quarter) to Rs 66,986 crore. The purchase has allowed the firm to modify its loan book and increase its retail lending portfolio via multi-product offerings that provide to the requirements of the underserved customers of India. Leveraging their data, analytics and technology capabilities, they plan to be an aggressive player in the developing tier 2-3 cities and be the lender of choice for budget-conscious customers. During the quarter, the board of directors nodded to the demerger of the company's pharmaceuticals business and simplification of the corporate structure. It will create two separate registered entities in financial services and pharmaceuticals - thereby unlocking value for their shareholders. It is in line with their said commitment as they continue to develop organically and inorganically across both the business sectors. The balance sheet power and uniqueness of our business models set them apart, allowing them to build long-term value for their stakeholders. The purchase of DHFL and its merger with Piramal Capital & Housing Finance Limited (PCHFL) was executed in September 2021, Piramal Enterprises said. Image Source Also read: ED investigates Rs 2,000 cr loan from Piramal Group to Omkar