Piramal Enterprises Share Buyback: Piramal Enterprises, a leading diversified NBFC, on Friday reported a profit after tax (PAT) of Rs 509 crore for the April-June 2023 quarter. The profit was led by a gain of Rs 855 crore on the sale of Shriram Finance Ltd’s stake. Its total assets under management (AUM) stood at Rs 63,938 crore as on June 30, 2023.
The company on Friday also announced a share buyback worth Rs 1,750 crore.
“The board of directors of the company at its meeting held on July 28, 2023, approved a buyback by the Company of up to 1,40,00,000 equity shares of the company of face value of Rs 2 each for an aggregate amount not exceeding Rs 1,750 crore, being 5.87 per cent of the total paid-up equity share capital, at Rs 1,250 per equity share,” Piramal Enterprises said in a regulatory filing.
Piramal Enterprises’ gross NPA ratio stood at 2.8 per cent during the quarter, compared with 3.8 per cent in the previous quarter. Its net NPA reduced to 1.5 per cent in the June 2023 quarter, compared with 1.9 per cent a quarter ago.
Ajay Piramal, Chairman, Piramal Enterprises Ltd., said, “In line with our consistent focus on long-term value creation for stakeholders and effective utilisation of capital, the Board of Directors of the company are pleased to announce the buyback of equity shares of the company. The promoter and promoter group shall not participate in the buyback. This capital allocation strategy aims to combine investing in our core business and returning excess capital to shareholders.”
He added that the company’s Q1 performance is in line with our endeavour towards building a large diversified non-banking financial company. In the mid to long term, Piramal aims to have retail lending account for two-thirds of its assets, reflecting our strategic focus.
In Retail lending, the company has achieved sustained growth in the retail sector, fulfilling the credit needs of the “Bharat” market through our technology-led multi-product franchise. This business now contributes to 55 per cent of our AUM.
“While we actively expand our retail lending business, we are simultaneously investing in human resources, branch infrastructure, technology, and analytics to ensure its future growth,” he said.
In wholesale lending, the company is capitalising on market gaps and leveraging its strengths to build the new cash flow and asset-backed Wholesale 2.0 book across real estate and corporate mid-market lending. It has reduced its wholesale AUM by 38 per cent YoY.
