New Delhi, Jan 27 (PTI) Piramal Enterprises Ltd (PEL) on Monday said it has reported a net profit of Rs 39 crore in the third quarter ended December 2024.

The diversified non-banking finance company posted a net loss of Rs 2,378 crore in the year-ago period.

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In an earnings call, Piramal Enterprises also said as a precursor of its merger with wholly-owned subsidiary Piramal Capital & Housing Finance (PCHFL), the RBI in a communication on December 23, 2024, has approved the change of name of PCHFL to Piramal Finance.

"The conversion of PCHFL to an NBFC is progressing well. We are filing for a name change with the RoC (Registrar of Companies) which is a precursor for conversion to NBFC," the company said.

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It expects to complete the process of merger of Piramal Enterprises with Piramal Finance by September.

In May last year, the Piramal Enterprises Board approved its merger with PCHFL.

Since RBI norms do not allow the merger of NBFCs with housing finance companies, hence PEL board decided to change the name of PCHFL to Piramal Finance.

Besides, Piramal Enterprises is expecting a deferred compensation of USD 140 million from its 2018 divestment of Piramal Imaging. The proceeds are expected to come in by the next fiscal.

On the quarterly results, Piramal Enterprises said its assets under management (AUM) grew 16 per cent to Rs 78,362 crore at the end of December.

The company posted a profit of Rs 39 crore in the December quarter, buoyed by Rs 376 crore of exceptional gains. The exceptional gains arose from recovery towards AIF provisioning made last year.

In the December quarter of last fiscal, Piramal Enterprises made a provisioning of Rs 3,540 crore following RBI's norms for lender with investments in alternative investment funds (AIFs). That provisioning had led the PEL to incur a net loss of Rs 2,378 crore in the Q3 of FY24.

PEL's revenue from operations dipped marginally to Rs 2,449 crore in Q3 of the current fiscal, from Rs 2,476 crore a year ago.

Shares of PEL closed 7.66 per cent lower at Rs 915.50 apiece on the BSE.

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