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Piramal Enterprises Q4 Results: Firm posts ₹137-crore net profit, declares ₹10 dividend
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The Board has approved the composite scheme of arrangement for merger of Piramal Enterprises with its 100% subsidiary Piramal Capital and Housing Finance Limited, and renaming the later as Piramal Finance Ltd.
Piramal Enterprises Ltd on Wednesday reported a net profit of ₹137 crore for the quarter ending March 31, 2024. It reported a net loss of ₹195.9 crore in the year-ago period.
The company’s consolidated revenue from operations rose 16% year-on-year to ₹2,473 crore in the quarter, compared to ₹2,131.7 crore in the same quarter last fiscal.
The company total assets under management (AUM) rose 8% YoY, led by its growth in business.
On AUM growth and AUM mix, the company is running ahead of the medium term guidance, it said in a statement.
The Board has approved the composite scheme of arrangement for merger of Piramal Enterprises Ltd. with its 100% subsidiary Piramal Capital and Housing Finance Limited (PCHFL); and renaming PCHFL as Piramal Finance Ltd (PFL).
As part of the merger consideration, PEL shareholders, in lieu of every one equity share of PEL, will get one equity share of PFL and subject to RBI approval, one NCRPS (non-convertible non-cumulative non participating redeemable preference share) of ₹67 of PFL.
The company expects the entire process to be completed in 9-12 months.
“With the intent of further simplifying our group structure and creating a stronger, more flexible entity that enhances value for all stakeholders, the Board of Directors has approved PEL’s merger with its subsidiary, Piramal Capital & Housing Finance Ltd, subject to regulatory approvals,” said Ajay Piramal, Chairman, Piramal Enterprises Ltd.
The company informed the exchanges about concluding sale of Shriram investments for ₹1,440 crore, having carrying value of ₹569 crore.
The company has received an income tax assessment order for FY2021-22, wherein it has been allowed an assessed carry forward loss of ₹10,627 crore, arising from the merger with eDHFL.
The Board has recommended a final dividend of ₹10 per equity share of face value of ₹2 each for the financial year 2024. This will result in a dividend payout of 500%.
The dividend will be paid after the 77th Annual General Meeting, subject to approval of the shareholders of the company, the company said in a regulatory filing.
Additionally, the Board has appointed Asheet Mehta as an Additional Director to hold office as an Independent Director of the company for a term of 5 years, subject to the approval of shareholders. The appointment of Mehta will be effective from June 1, 2024.
Shares of Piramal Enterprises Ltd. settled 3.32% lower at ₹897.95 apiece on the NSE. The stock has fallen 4% in 2024 so far.
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