Piramal Enterprises Invests ₹1,000 Crore in Subsidiary PCHFL for Growth

31 Dec 2024 , 09:48 PM

On December 31, Piramal Enterprises announced that it has invested ₹1,000 crore in its wholly-owned subsidiary, Piramal Capital & Housing Finance Ltd (PCHFL). The investment will help PCHFL grow its business and meet general corporate needs.

This deal does not change the two companies’ equity structure. Piramal Enterprises still owns 100% of PCHFL. The transaction falls in the internal transaction category because the parent is trading with a subsidiary. Hence, no rules that normally apply in cases of related-party transactions shall apply.

PCHFL has been increasing its business over the years gradually. In FY22, it had a turnover of ₹6,038.61 crore. It increased to ₹6,591.78 crore in FY23 and further to ₹6,663.56 crore in FY24.

Piramal Enterprises, too posted a good quarter of financial result for the quarter ended September for FY25 by posting a two-fold increase at 238% from the preceding year. At ₹162.97 crore it had posted for Q2FY24, where as in this quarter it achieved ₹48.19 crore against ₹181.45 crore which it had shown in Q1FY25 showing a decline by 10%.

Revenue for Q2 FY25 was at ₹2,080.43 crore, 17% up from ₹1,778.32 crore for the same quarter last year. Revenue growth is nearly 8% when compared to the previous quarter.

The total assets for Piramal Enterprises went up by 45% year on year to ₹62,626 crore. The retail lending business performed well, hence increasing it to 42% to ₹54,737 crore. The amount disbursed as mortgage enhanced by 39% to ₹4,653 crore, which again shows the strength of their lending business.