Q2 2025 Piramal Enterprises Ltd Earnings Call Transcript
Key Points
- Piramal Enterprises Ltd (BOM:500302) reported a consolidated net profit of INR163 crores for Q2 FY25, with the growth business contributing INR130 crores.
- The company's total AUM grew by 12% year-on-year to INR74,692 crores, driven by a 45% year-on-year increase in the growth wholesale AUM.
- Retail AUM grew by 42% year-on-year, now forming 73% of the total AUM, indicating strong performance in the retail lending segment.
- The company successfully diversified its borrowing base, with securitization now at 14% of total borrowings, up from 4% in the same quarter of FY24.
- Piramal Enterprises Ltd (BOM:500302) has made significant progress in reducing its legacy discontinued wholesale AUM, which is down 72% since March 2022.
- The company's gross credit cost increased to 1.8% in Q2 FY25 from 1.6% in Q1, indicating rising credit risks.
- The digital loan business faced constraints, with disbursements reducing significantly from previous quarters.
- There is a noted increase in risk within the unsecured business loans segment, with rising delinquency trends.
- The legacy discontinued AUM still stands at INR12,000 crores, representing 16% of the total AUM, which the company aims to reduce further.
- The retail credit cost is expected to increase in the coming quarters due to the challenging risk environment.
Ladies and gentlemen, good day and welcome to Permal Enterprises Limited Q 225 earnings conference call as a reminder, all power lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mister Ravi Singh, head of Investor Relations Strategy and Sustainability from Permal Enterprises Limited. Thank you and overdue.
Thanks Michelle and how you are welcome to our conference call for Q2 '25. Our results material has been uploaded on our website and you may like to refer to them during our discussion.
The discussion today may include some power treatment based on management expectations that are subject to uncertainty and changes and must be new interaction with the data business on the call.
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