Piramal Enterprises Limited — PPTs, 28-02-2025: Investor Presentation

Investor Presentation Summary

**Financial Highlights:**

Piramal Enterprises reported a total AUM of ₹78,362 crore, a year-on-year growth of 16%. The retail AUM reached ₹59,093 crore, up 37% YoY, driven by housing loans and secured products. Retail contributions now represent 75% of total AUM, with a net interest margin of 13.5%. The consolidated profit before tax for Q3 FY25 saw a loss of ₹290 crore, impacted by elevated loan loss provisions, while net interest income increased by 13% to ₹940 crore.

**Strategic Initiatives and Growth Drivers:**

The company is transitioning aggressively to a retail-led business model, leveraging a "High Tech + High Touch" approach for customer engagement and underwriting. It aims to decrease legacy assets to below 10% of AUM by FY25, while focusing on diversification in growth areas, including secured MSME loans and automated digital initiatives.

**Business Developments:**

Piramal's wholesale lending division is capitalizing on opportunities in underpenetrated markets, growing the wholesale AUM to ₹8,916 crore. The successful integration of the DHFL portfolio bolsters the retail segment, while new partnerships in direct assignments and co-lending are enhancing its competitive edge.

**Market Position and Competitive Advantage:**

With a strong promoter group and seasoned management team, Piramal positions itself to capture market share effectively. The focus on retail lending in less saturated Tier 2 and 3 markets, along with a diversified service offering, underscores its competitive advantage.

**Investor Implications:**

The strategic transition and significant growth in retail lending present a positive outlook for investors. Continued efficiency in operations along with a focus on credit quality positions Piramal for sustainable profitability. Investors should monitor the company's path towards reduced legacy exposure and its successful execution of digital transformations.