Piramal Enterprises Q4 Results: Loss widens to Rs 196 crore on dip in Shriram investment value

Mumbai: Non-banking finance company Piramal Enterprises slipped into a loss due to mark-to-market (MTM) impact the company had to account for its investments in Shriram Finance.

The company slipped into a loss of 196 crore in the quarter ended March 2023 from a profit of 151 crore a year ago due to a 375-crore MTM loss the company had to take for its equity investment in Shriram Finance.

In April 2014, Piramal bought a 20% stake in Shriram Capital, the holding entity for all Shriram Group companies as a strategic investment. But the merger never took off and as a result Piramal sold a majority of its stake. It currently owns 8.34% stake in the company.


Besides the MTM loss, interest income for the company was also weak during the quarter falling 16% year on year to 1,921 crore in March 2023 from 2,292 crore a year earlier. The company had to also provide for impairment on financial assets due to an increase in the expected credit loss (ECL) provision including a prudential write-off amounting to 643 crore.

The company’s retalization of loan book continued with retail assets growing 49% year on year to 32,144 crore and now making 50% of overall assets under management mix. Disbursements continued at a robust pace increasing four and a half times 6,828 crore during the quarter.