They 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
The key highlights include:
- Total AUM grew 35 per cent since pre-merger1 to INR 63,780 Cr.
- Retail loan book now accounts for 43% of overall loan book vs 12 per cent pre-merger1.
- Revenues2 grew 37% on a YoY basis to INR 997 Cr., primarily on account of DHFL acquisition as well as healthy growth in our retail lending business.
- The stable GNPA ratio stood at 3.7 per cent with NNPA ratio at 1.3 per cent.
- Provisions as % of wholesale AUM increased to 13.1 per cent from 8.8 per cent last quarter.
- Capital Adequacy Ratio of 23% in Q2 FY23.
Ajay Piramal, Chairman, of 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 their earlier guidance, taking them closer to our aspirations of becoming a more retail-oriented NBFC. In the wholesale lending business, they have largely completed our asset recognition cycle and are well provided on Stage 2 and Stage 3 loans. They 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, they are also investing to build a cashflow and asset-backed real estate and mid-size corporate lending business.
Their balance sheet remains strong with a capital adequacy ratio of 23 per cent 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.