Piramal Enterprises Limited (PEL) has no plans to acquire stake in Dewan Housing Finance Corporation (DHFL), says Ajay Piramal, chairman of the group.
"As of now we have no plans to invest in any equity as far as DHFL is concerned. We look at various options, there are many ways of growing our book organically as well as inorganically. If we do any inorganic acquisition, it could be on assets, it will be something that we will do with a lot of diligence and unless we are fully confident about the quality of the asset, we will not do anything other than that," he said.
On Friday, Piramal Enterprises reported 88 per cent plunge in consolidated net profit to Rs 456.24 crore for the fourth quarter ended March 31, 2019. In the year-ago period, the company had a net profit of Rs 3,943.98 crore on the back of deferred tax, according to a regulatory filing.
The company's revenue has grown by 23 percent on a year on year basis. The consolidated revenue from operations stood at Rs 3,679.67 crore for March quarter 2018-19 as against Rs 2,991.06 crore in the same period of 2017-18.
"There are certain issues that we had, which we had seen could become issues as far as real estate is concerned in the next year. But we have been able to solve each one of those and therefore overall our gross NPA is still sub 1 percent though we provide for almost 1.93 percent. So, we have been conservative in that every year and I think our portfolio stance has stood the test of time in the most challenging times," Piramal pointed out.
"We are looking at what is the best way to create value for Shriram, for the shareholders of PEL as well as the Shriram shareholders. One of the ways to create value for all shareholders is to merge all the entities together. We are examining whether all the Shriram entities -- Shriram Capital, Shriram Transport and City Union – can be merged," he added.