LKP Securities Limited , a prominent player in the Indian financial services sector, has reported robust financial results for the first quarter and announced plans for a significant preferential share issue.

Q1 Financial Highlights

For the quarter ended June 30, LKP Securities demonstrated strong performance across key financial metrics:

• Consolidated revenue from operations decreased to Rs 2,786.26 crore, down from Rs 3,070.79 crore in the same quarter last year.
• Profit before tax rose to Rs 595.32 crore, compared to Rs 567.89 crore in Q1 of the previous fiscal year.
• Net profit for the quarter stood at Rs 440.42 crore, showing growth from Rs 411.06 crore year-over-year.
• The company's earnings per share (EPS) for the quarter was Rs 0.54, indicating improved profitability.

Preferential Share Issue

In a significant move to bolster its capital base, LKP Securities' Board of Directors has approved a preferential issue of equity shares. The key details of the proposed issue are:

• Up to 47,62,000 fully paid-up equity shares will be issued.
• The issue price is set at Rs 21 per share, including a premium of Rs 19 per share.
• The total amount to be raised through this issue is approximately Rs 10 crore.
• The shares will be allotted to Mahendra Doshi, representing the promoter group, on behalf of the partnership firm M/s L K Panday.

This preferential issue is subject to shareholder approval, which will be sought through a postal ballot. The funds raised are intended for investment in Bond Street Capital Private Limited and for general corporate purposes.

Impact on Shareholding

Post-allotment, the promoter group's shareholding in LKP Securities is expected to increase from 71.04% to 72.62%. Specifically, Mahendra Doshi's stake (on behalf of M/s L K Panday) will rise from 23.92% to 28.08%.

Management Commentary

Pratik M Doshi, Managing Director of LKP Securities, commented on the results and the share issue: "Our strong Q1 performance reflects the robustness of our business model and the trust our clients place in us. The proposed preferential issue will further strengthen our capital base, enabling us to capitalize on growth opportunities and enhance shareholder value."

The company will seek shareholder approval for the preferential issue through a postal ballot, with e-voting scheduled from July 26 to August 24.

LKP Securities continues to focus on its core business of stock broking and related financial services, positioning itself for sustained growth in the dynamic Indian financial market.

LKP Securities Limited , a prominent player in the financial services sector, has announced its unaudited financial results for the first quarter ending June 30. The company has reported robust performance on both standalone and consolidated bases, along with a significant move to strengthen its capital structure through a preferential share issue.

Financial Performance Highlights

The company's consolidated financial results for Q1 showcase a strong start to the fiscal year:

On a standalone basis, LKP Securities reported:

The company's performance demonstrates resilience and growth in a dynamic market environment.

Key Revenue Drivers

LKP Securities' revenue streams showed positive momentum across various segments:

1. Fees and commission income remained the largest contributor, reaching Rs. 2,278.40 lakhs on a consolidated basis.
2. Interest income stood at Rs. 466.08 lakhs, indicating a stable interest-earning portfolio.
3. The company reported a net gain on fair value changes of Rs. 40.30 lakhs, which includes an unrealized gain of Rs. 31.16 lakhs.

Operational Efficiency

Despite the growth in revenue, LKP Securities managed to keep its expenses in check:

• Employee benefit expenses were Rs. 941.28 lakhs.
• Finance costs were contained at Rs. 178.13 lakhs.
• Fees and commission expenses stood at Rs. 648.37 lakhs.

This operational discipline contributed to the healthy profit margins for the quarter.

Preferential Share Issue

In a strategic move to bolster its capital base, the Board of Directors has approved the issuance of 47,62,000 equity shares through a preferential allotment:

• Price per share: Rs. 21 (including a premium of Rs. 19 per share)
• Total amount to be raised: Rs. 10,00,02,000
• Allottee: Mahendra Doshi (on behalf of Partnership Firm M/s L K Panday)
• Purpose: To strengthen the company's capital structure and support growth initiatives

This preferential issue will increase the promoter group's shareholding from 23.92% to 26.08%, subject to shareholder approval through a postal ballot.

Employee Stock Options

During the quarter, LKP Securities allotted 3,66,170 equity shares to employees under its stock option plans, aligning employee interests with the company's long-term growth.

Management Commentary

Pratik M. Doshi, Managing Director of LKP Securities Limited, stated, "We are pleased with our strong start to the fiscal year. Our robust financial performance reflects the strength of our business model and the trust our clients place in us. The approved preferential share issue will further strengthen our capital base, enabling us to capitalize on growth opportunities in the dynamic financial services landscape."

Outlook

With a solid first quarter performance and strategic capital infusion plans, LKP Securities is well-positioned to navigate market challenges and pursue growth opportunities in the coming quarters. The company's focus on operational efficiency, coupled with its efforts to strengthen its capital structure, bodes well for its future prospects in the competitive financial services sector.