Piramal Finance has reported a significant increase in its financial performance for the second quarter, while Poonawalla Fincorp has swung back to profitability. Both companies have shown strong growth in their key financial metrics.

Piramal Finance's Strong Performance

Piramal Finance has demonstrated robust growth in the September quarter:

The company's performance was driven by strong growth in net interest income and improved asset management. The net interest margin saw a significant increase of 104 basis points, reaching 6.10%. Additionally, Piramal Finance managed to decrease its cost of borrowing by 19 basis points during the quarter, further contributing to its profitability.

Poonawalla Fincorp's Turnaround

Poonawalla Fincorp has shown a remarkable turnaround in its financial results:

The company's return to profitability is a significant achievement, with a net profit of ₹74.00 crore compared to a loss of ₹471.00 crore in the same period last year. This turnaround was supported by a strong increase in net interest income and substantial growth in assets under management.

Poonawalla Fincorp's impressive 68% growth in AUM was attributed to increased contributions from new business verticals and improved liability management. The company has successfully leveraged cost-effective non-convertible debenture issuances to optimize its financial structure.

Conclusion

Both Piramal Finance and Poonawalla Fincorp have demonstrated strong financial performance in the September quarter, reflecting positive trends in the non-banking financial sector. The growth in assets under management and improved profitability metrics indicate robust business strategies and effective market positioning for both companies.

Piramal Finance, a key player in India's financial services sector, has announced a significant leadership change. Anand Piramal, who has been instrumental in the company's recent growth and strategic moves, has been appointed as the new Chairman of Piramal Finance.

A New Era of Leadership

Anand Piramal's appointment marks a new chapter for Piramal Finance. Having joined the business in 2019, Anand has quickly made his mark, spearheading two critical initiatives that have shaped the company's trajectory:

1. Leading the Retail Lending Platform: Under Anand's guidance, Piramal Finance has strengthened its position in the retail lending space, a crucial segment in India's rapidly evolving financial landscape.

2. Orchestrating a Major Acquisition: Anand played a pivotal role in the acquisition of DHFL (Dewan Housing Finance Corporation Limited), a deal valued at Rs 34,250.00 crore. This strategic move has significantly expanded Piramal Finance's market presence and portfolio.

Continuity in Group Leadership

While Anand takes on the role of Chairman at Piramal Finance, his father, Ajay Piramal, will continue to serve as the Chairman of the broader Piramal Group. This arrangement ensures a balance of fresh perspective and seasoned leadership across the group's diverse business interests.

Corporate Restructuring

The appointment of Anand Piramal as Chairman coincides with a significant corporate restructuring. The National Company Law Tribunal (NCLT) has approved the merger scheme between Piramal Enterprises and its wholly-owned subsidiary, Piramal Finance. This merger is expected to streamline operations and potentially unlock value for shareholders.

Looking Ahead

As Anand Piramal steps into his new role, the financial industry will be watching closely. His track record of leading the retail lending platform and managing a large-scale acquisition suggests a leadership style focused on growth and strategic expansion. The coming months will likely reveal more about Piramal Finance's direction under its new chairman, particularly in terms of its retail lending strategy and potential further acquisitions or partnerships in the financial services sector.

This leadership transition at Piramal Finance represents not just a change in personnel, but potentially a new phase in the company's evolution in India's dynamic financial services landscape.