The stock of the Non-Banking Financial Company (NBFC) surged by over 4% following the announcement of a profit of ₹38 Cr, compared to a loss of ₹2,377 Cr in the previous year
Non-Banking Financial Company (NBFC): Piramal Enterprises, a leading Non-Banking Financial Company (NBFC) operating in various sectors such as retail lending, wholesale lending, life insurance, and fund management, saw a significant increase of over 4% in its share price following the announcement of stellar results.
With a market capitalization of Rs. 20,642 Cr, Piramal Enterprises’ shares surged over 4% from Monday’s closing price of Rs. 914 to an opening price of Rs. 947.
In the third quarter of FY25, the company reported a remarkable turnaround, shifting from a loss of Rs. 2377 Cr in Q3FY24 to a profit of Rs. 38.56 Cr in Q3FY25. However, on a quarter-on-quarter basis, profits decreased by 76.33% from Rs. 162.97 Cr. The Gross Non-Performing Assets (GNPA) increased to 2.8% from 2.4%, while Net Non-Performing Assets (NNPA) rose to 1.5% from 1.1% for the same period.
Net Interest Income (NII) grew by 13% year-on-year, reaching Rs. 940 Crores from Rs. 835 Cr. Quarter-on-quarter, NII increased by 7% from Rs. 881 Cr.
Operational highlights for the quarter included a 16% year-on-year increase in Total Assets Under Management (AUM) to Rs. 78,362 Cr, with retail AUM at Rs. 59,093 Cr. The Net Interest Margin (NIM) for Q3FY25 was 5.7%, up from 4.9% in Q2FY25, and Credit cost increased to 2.3% from 1.8% for the same period.
Notable growth was seen in various loan segments, with housing loans increasing by 25% to Rs. 25,287 Cr
Share Price Movement
The stock opened at Rs. 947 and later reached an intra-day high of 984. Currently, the stock is trading 25% below its 52-week high of Rs 1269. The stock has experienced a negative return of -13% in the past month and a -7% return over the last 6 months.
About the company
Piramal Enterprises Limited (PEL), formerly known as Piramal Healthcare Limited, is the flagship company of the Piramal Group, under the leadership of Ajay Piramal. Established in the 1980s, the Piramal Group is a prominent conglomerate in India, known for its successful ventures in various industries. Through a combination of organic growth and strategic acquisitions, the Piramal Group has expanded its presence globally, operating in 30 countries.
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