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Motilal Oswal Report
Piramal Enterprises Ltd. reported a net loss of ~Rs 2 billion in Q4 FY23 (previous year: Net loss of ~Rs 450 million) on account of-
mark-to-market loss of ~Rs 3.8 billion on Shriram investments and
a 52% YoY jump in opex to ~Rs 6.7 billion.
FY23 profit after tax grew 5% YoY to Rs 19 billion (excluding exceptional gain of ~Rs 80 billion pertaining to demerger).
Piramal Enterprises' net interest income declined 18% YoY/11% QoQ to Rs 9.2 billion because of lower interest income accretion, driven by the rundown in the wholesale book.
Reported credit costs declined to ~Rs 3 billion in Q4 FY23 (previous quarter: ~Rs 15.4 billion). Writeoffs in Q4 FY23 stood at Rs 6.44 billion (previous quarter: Rs 7.7 billion). Total expected credit loss provisions declined by ~380 bp QoQ to 6.2% of assets under management (previous quarter: 10%).
Wholesale AUM declined 16% YoY to ~Rs 319 billion, while wholesale 1.0 AUM declined 33% YoY to ~Rs 291 billion. The management seemed committed to running down the stressed wholesale exposures through monetisation of exposures, one-time settlements and portfolio sales to asset reconstruction company for cash or security receipts.
More importantly, the management sounded confident that the realisation from resolution of stressed exposures should not result in any significant additional credit costs in the quarters ahead.
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Also Read: Federal Bank Q4 Results Review - RoA Continue To Improve; NIMs Declined QoQ: IDBI Capital
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