Piramal Enterprises: Net Profit Resurgence Amidst Strategic Changes

Piramal Enterprises Ltd reported a turnaround with a net profit of Rs 39 crore in Q3, following a significant loss last year. The company's merger with Piramal Capital & Housing Finance progresses, as the RBI approved a name change to Piramal Finance. Revenue dipped slightly while assets under management grew.

Piramal Enterprises Ltd (PEL) announced a significant turnaround, reporting a net profit of Rs 39 crore in the third quarter of FY24, compared to a substantial loss of Rs 2,378 crore in the same period last year. This revival was supported by exceptional gains from recovery towards AIF provisioning.

The company is set to merge with its subsidiary, Piramal Capital & Housing Finance, which will be renamed Piramal Finance, pending approval from the Registrar of Companies. The merger process is expected to conclude by September, despite earlier regulatory challenges.

As part of its strategic developments, PEL anticipates deferred compensation from its 2018 divestment of Piramal Imaging. The company's assets under management saw a 16% increase, reaching Rs 78,362 crore by December's end, although revenue saw a slight decline.

(With inputs from agencies.)