Piramal Enterprises Q2 - Stressed Pool Recognition In Wholesale Led To Elevated Credit Costs: Motilal Oswal

Motilal Oswal Report

Piramal Enterprises Ltd. reported a consolidated loss of ~Rs 15.4 billion (previous year: up Rs 4 billion) in Q2 FY23. Net interest income grew 36% YoY, but fell 15% QoQ, to Rs 8.4 billion. This included interest income reversals of ~Rs 2.3 billion due to the movement of wholesale exposures to stage-II from stage-I.

Pre provision operating profit declined by 16% YoY to ~Rs 4 billion.

Total assets under management declined by 5% YoY to ~Rs 638 billion, while retail loans grew 12% to ~Rs 249 billion. The share of the retail loan book rose to 43% (versus 12% pre-merger).

Piramal Enterprises recently launched its microfinance business under the BC model and has started offering salaried personal loans from its branches.

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