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