Piramal Enterprises Share Price Down by 4.24%; Reports 12% YoY AUM Growth in Q2 FY25 Earnings

Piramal Enterprises Limited (PEL) announced its unaudited financial results for the quarter and half-year ended September 30, 2024. 

The company reported a significant year-on-year (YoY) growth in its Assets Under Management (AUM), reaching ₹74,692 crore, an increase of 12% YoY. The Growth AUM, which represents 84% of the total AUM, surged by 45% YoY to ₹62,626 crore. In contrast, the Legacy AUM (discontinued operations) saw a sharp decline of 49% YoY to ₹12,066 crore, marking a 72% reduction since FY22. The improved mix of Growth to Legacy AUM stands at 84:16, a substantial shift from 34:66 in FY22.

For Q2 FY25, Piramal Enterprises reported a consolidated Profit After Tax (PAT) of ₹163 crore, slightly lower than the ₹181 crore reported in Q1 FY25. The company’s customer acquisition through its branch network remains strong, with 92% of total retail AUM attributed to this channel.

In terms of asset quality, PEL’s consolidated Gross Non-Performing Assets (GNPA) ratio stood at 3.1%, while the Net NPA (NNPA) ratio was at 1.5%. The company also reported a robust net worth of ₹26,930 crore, supported by a capital adequacy ratio of 23.3% on its consolidated balance sheet, reflecting strong financial health and a solid capital base.

Commenting on the performance, the Chairman of Piramal Enterprises Ltd, Ajay Piramal, added, “We are on track to reduce legacy discontinued AUM to below 10% of total AUM by March 2025, with ongoing recovery efforts strengthening our financial position. In October 2024, we raised an additional $150 million through a Sustainability Bond, which was oversubscribed 3.5 times, reflecting strong investor confidence in our vision for sustainable growth.”

On October 24, 2024, Piramal Enterprises share price opened at ₹1,036.55, down from its previous close of ₹1,044.25. At 9:37 AM, the share price of Piramal Enterprises was trading at ₹1,000, down by 4.24%.

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