Piramal Enterprises Limited — Important, 28-01-2025: Updates

**Financial Highlights:** Piramal Enterprises reports a 40% YoY increase in growth AUM, which now represents 87% of total AUM, reflecting a positive shift away from legacy assets. The total AUM has grown 12% YoY, while legacy AUM is expected to fall below 10% in FY25 and under 5% by FY26. The company's profitability metrics are stable with a net interest margin (NIM) around 6.7% to 7.6% over recent quarters.

**Strategic Initiatives and Growth Drivers:** The company is focused on enhancing its retail and wholesale segments, with retail disbursements increasing 9% YoY. Investments in brand building have driven website traffic and customer consideration upward, contributing to overall retail growth.

**Business Developments:** Plans for the merger with Piramal Capital and Housing Finance Limited (PCHFL) are underway, with completion expected by Q3 FY25. This strategic move is aimed at creating a more robust financial entity.

**Market Position and Competitive Advantage:** The company maintains a strong asset quality, with overall delinquency rates remaining stable. Its diversified loan portfolio and focus on retail banking give it an edge in a competitive market.

**Investor Implications:** The positive growth trajectory and proactive management of legacy assets suggest strong potential for future returns. Investors should watch for developments around the merger and continued improvements in asset quality as key indicators of long-term value creation.