Piramal Enterprises Q4 Review - Stressed Asset Resolutions, Normalisation In Credit Costs: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .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 anda 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..Click on the attachment to read the full report:.Federal Bank Q4 Results Review - RoA Continue To Improve; NIMs Declined QoQ: IDBI Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Piramal Enterprises Q4 Review - Stressed Asset Resolutions, Normalisation In Credit Costs: Motilal Oswal

Healthy growth in retail to offset the rundown in wholesale AUM.

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