Piramal Enterprises Q4 Review - Strategic Priorities Remain In Place: ICICI Securities
Billionaire Ajay Piramal, chairman of Piramal Group during an interview in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Piramal Enterprises Q4 Review - Strategic Priorities Remain In Place: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Piramal Enterprises Ltd. reported a loss of Rs 5 billion due to deferred tax asset derecognition of Rs 12.6 billion created on goodwill earlier.

Adjusting for this, consolidated profit after tax was down 7% QoQ to Rs 7.48 billion.

Company stayed put on its strategy of rationalising wholesale exposure (down 4% QoQ), ramping up secured mass retail lending, and addressing stress exposures appropriately (through provisioning or restructuring).

No credit cost (all through FY21) after creating buffer in Q4 FY20 despite doubling of stage-assets suggests adequacy of the provisioning.

However, yields were dragged down due to interest de-recognition and ‘interest on interest’ reversals, which weighed on core earnings.

Click on the attachment to read the full report:

ICICI Securities Piramal Enterprises Q4FY21 Results Update.pdf

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