Piramal Enterprises had a dismal day on the back of a dismal performance for Q4FY22.
The company’s financial services business posted a net loss of Rs.321 crore v/s net profit of Rs.243 crore (YoY). This was mainly on account of additional provisioning and interest reversals totaling Rs 1,037 crore corresponded to select wholesale non-RE accounts that moved to Stage-2.
But for the company as a whole, which has a pharma and a financial segment, on a consolidated basis, posted a net profit of Rs.151 crore v/s loss of Rs.510 crore (YoY). This was on a total revenue of Rs.4163 crore, up 22%.
In another development, Insurance Regulatory and Development Authority (Irdai) wrote to Reliance Capital’s administrator flagging concerns over Piramal Group’s bid for the firm, pointing out that the it already has a promoter stake in a life insurance firm. As per IRDAI rules, no entity can act as a promoter of more than one insurance company in the same line of business.
The market gave the stock a big thumbs down; from its close of yesterday at Rs.1855.90, it tumbled down to hit a new 52-week low Rs.1640.80 and is currently among the top five losers on the BSE, trading around Rs.1645 levels.