Piramal Enterprises registered a 20.2 per cent increase in net profit to Rs 724.19 crore in the third quarter of the fiscal compared to Rs 602.04 crore in the same period a year ago.

Its total income grew by 9.9 per cent in the October to December 2019 quarter to Rs 3,947 crore as against Rs 3,592.10 crore in the same period a year ago.

Ajay Piramal, Chairman, Piramal Enterprises Ltd said that by the end of the current financial year the company would have exceeded its earlier stated commitment of bringing in Rs 8,000 crore to Rs 10,000 crore of equity, with inflows of up to Rs 14,500 crore, through various initiatives including Preferential Allotment to CDPQ, sale of DRG and Rights Issue.

“Our repeated partnerships with marquee global and domestic investors are an affirmation of the robustness of our business model and future growth trajectory,” he said.

In a statement, PEL said the company is transforming the financial services business into a well-diversified model across both wholesale and retail financing.

In the financial services business, its loan book stood at Rs 51,429 crore as on December 31, 2019 as against Rs 53,055 crore as of September 2019. It attributed it to reduction of large single borrower exposures.

“As of December 2019, only one exposure is higher than the threshold of 15 per cent of net worth, whereas all other exposures are below 12 per cent of the net worth of the financial services business,” it said.

It further said that in wholesale financing, it is selectively tapping superior ‘risk-reward’ and last-mile funding opportunities and is building and scaling-up a retail consumer financing business.

Gross non-performing asset (GNPA) ratio increased to 1.8 per cent as of December 2019 as against 0.9 per cent as of September 2019, which it attributed to some accounts moving from Stage-2 to Stage-3.

Its scrip was up 3.67 per cent during intra day trade on Bombay Stock Exchange (BSE) on Tuesday.

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