Non-bank lender Piramal Finance reported a 67% increase in net profit, reaching ₹545 crore for the September quarter, driven by core income growth and cost improvements.

Key Financial Highlights

  • Core net interest income grew 35% to ₹1,530 crore.
  • Assets under management (AUM) increased by 24%.
  • Net income margin expanded by 0.35% to 6.5%.
  • The cost-to-income ratio improved to 52.1%, down from 61.2%.

Jairam Sridharan, Managing Director and Chief Executive, emphasized that the company is uniquely positioned within the NBFC sector, stating, "We do not see a threat to margins amid the rising interest rate environment." He expressed confidence in expanding net interest margins (NIMs) by up to 0.20% over the next year.

Insights on Borrowing Costs

When questioned about managing to expand margins despite rising rates, Sridharan noted that a recent rating upgrade would help reduce borrowing costs over the next 2-3 years. He mentioned that AUM growth could have been higher if not for elevated repayments ahead of contracted terms, with nearly 70% of fresh disbursals being repaid during the quarter.