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Piramal Enterprises Limited (PEL) has marked a significant financial turnaround by posting a net consolidated profit of Rs 48 crore for the quarter ending September 30, 2023. This achievement contrasts sharply with the loss of Rs 1,536 crore incurred in the same quarter of the previous fiscal year, as detailed in the company's recent BSE filing. The company's net consolidated total income rose to Rs 2,205.21 crore in Q2 FY24, registering a growth of 12.73% from Rs1,956.23 crore in the corresponding quarter last year. This upward trajectory highlights the company's robust growth and resilience in a dynamic market environment. In a strategic move to enhance shareholder value, the board of directors has approved a buyback of equity shares. This buyback plan involves up to 1,40,00,000 equity shares, representing 5.87% of the pre-buyback fully paid-up equity shares, at a price of Rs1,250 per share. The total buyback amount aggregates to Rs1,750 crore, executed through the tender offer route. Further bolstering its financial position, PEL raised Rs532.90 crore through the public issue of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures subsequent to the half-year ending September 30, 2023. As of the same date, the company's net worth was reported at Rs26,444 crore. Key financial ratios such as the debt-equity ratio stood at 1.88, and the total debts to total assets ratio was 61.01%. The company maintained a stable asset quality with gross non-performing assets (NPAs) at 2.74% and net NPAs at 1.48%. PEL's Total Assets Under Management (AUM) showed an encouraging trend, increasing by 4% quarter-on-quarter and 5% year-on-year to Rs66,933 crore. Notably, Retail AUM witnessed a significant growth of 55% year-on-year, reaching Rs38,604 crore and contributing 58% to the overall AUM mix. In the retail lending segment, quarterly disbursements surged by 57% year-on-year to Rs6,246 crore, and housing disbursements grew by 55% year-on-year to Rs2,313 crore. PEL's foray into the financial services sector is marked by the establishment of Piramal Capital & Housing Finance. This entity, registered with the Reserve Bank of India, is engaged in various financial services businesses, signifying PEL's commitment to diversifying and strengthening its financial services portfolio. In conclusion, the remarkable financial recovery of Piramal Enterprises in Q2 FY24, characterized by significant profit gains and strategic corporate actions, underscores the company's resilience and adaptive strategies in a challenging economic landscape. With robust growth in its AUM and successful expansion into diverse financial services, PEL is well-positioned for sustained growth and value creation for its stakeholders.
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