Piramal Enterprises is also concentrating on improving the ROE of the company. At present ROE is 25 per cent.
At the AGM today, Ajay Piramal indicated that PE is growing its loan book aggressively. Total Loan Book grew by 79% to Rs.28,648 Crores as on Jun 2017 Crores Vs. Rs.15,998 Crores as on 30 Jun 2016 (company presentation made to the exchanges).
PE’s finance business is looking to diversify into other areas in order to reduce concentration on the real estate sector. Emerging Corporate Lending is the new vertical that began ops in the June quarter.
Piramal Bain JV has received license for Asset Reconstruction Company. This JV will handle the group’s stressed assets business.
Housing Finance Corporation licence is expected in August, according to Ajay Piramal.
According to him companies like Piramal Enterprises will gain much following the introduction of RERA. Replying to a query by a shareholder he says only 10-15 per cent of the developers will remain in business and others without bandwidth will have to leave the business. Piramal Enterprises hopes to lend to the big developers.
Replying to another shareholder, Piramal said the government’s move to enforce generic marketing of medicines would be a big negative for the company and consumers in general. People would not be able to differentiate between manufacturers who maintain quality and those who do not, he said.
disclosure: holding in core portfolio.