Piramal Enterprises Targets 15% AUM Growth in FY25

Mumbai, Jul 8 (PTI) Non-bank lender Piramal Enterprises aims to accelerate the pace of growth to 15 per cent and increase its assets under management (AUM) to Rs 80,000 crore in the current fiscal, according to the company's chairman Ajay Piramal.

Piramal Enterprises had reported an 8 per cent growth in the AUM at a consolidated level in the previous fiscal.

The company is targeting to increase its overall AUM by 15 per cent to Rs 80,000 crore despite a sharp rundown in the legacy wholesale business, the chairman told shareholders at the annual general meeting held on Monday.

The legacy AUM will be less than 10 per cent of total AUM by the end of FY25 and less than 5 per cent of total AUM by FY26, he said.

At present, 70 per cent of the overall AUM is retail loans, which the company addresses as the 'growth business', he said and added that recently it crossed the Rs 50,000 crore milestone as well.

The chairman further said the overall AUM will nearly double in three years to touch Rs 1.5 lakh crore by end of FY28 from the Rs 80,000 crore targeted in end-FY25.

The share of retail business in the overall AUM will grow to 75 per cent by FY28, Piramal said, adding that it is also growing the wholesale 2.0 book consisting of cash flow and asset-backed exposures in the realty sector, mid-market corporates.

In FY24, the company had to report a loss of Rs 1,684 crore, largely because of being hit by the provisions it had to make towards its investments in the alternate investment funds, he said.

Piramal also added that the company expects to mostly recover these provisions, as was seen in the results for the January-March quarter of FY24.

He also said that the growth business is "on track" to achieve the steady state of profitability.