Adcon Capital Services Limited, a finance and investment company, has reported a significant increase in its financial performance for the first quarter.

Financial Highlights

Key Performance Indicators

Adcon Capital Services has shown remarkable growth in its Q1 results. The company's net profit soared to ₹48.39 lakhs, representing a 182% increase from ₹17.14 lakhs in the corresponding quarter of the previous year. This substantial growth was primarily driven by a significant rise in interest income, which more than doubled to ₹93.10 lakhs from ₹40.36 lakhs in Q1 of the previous year.

Revenue and Operational Performance

The company's revenue from operations witnessed a robust growth of 98%, reaching ₹93.10 lakhs compared to ₹46.99 lakhs in the same quarter last year. This growth was entirely attributed to higher interest income, as the company did not report any other operational income for the quarter.

Expenses and Profitability

While the company's total expenses increased to ₹28.44 lakhs from ₹24.05 lakhs in the previous year, the rise was proportionally less than the revenue growth. Notably, finance costs emerged as a significant expense item at ₹22.17 lakhs, up from zero in the corresponding period last year. Despite this increase in expenses, the company managed to substantially improve its profitability.

Segment Performance

Adcon Capital Services Limited operates in a single business segment of Finance & Investments, as per the Indian Accounting Standard (IndAS) 108 "Operating Segment".

Balance Sheet Position

The company's paid-up equity share capital stood at ₹3,181.28 lakhs, with a face value of ₹1 per share.

Auditor's Observation

It's worth noting that the company's auditors have observed that interest income is not being recognized on outstanding advances. Due to insufficient information, they were unable to calculate the appropriate interest income that should be recognized on such advances. This observation may have implications for the company's reported financial figures and should be considered by investors and analysts.

Conclusion

Adcon Capital Services Limited has demonstrated strong financial performance in Q1, with significant growth in both revenue and profitability. However, the auditor's observation regarding interest income recognition on outstanding advances warrants attention and may require further clarification from the company management.

Investors and stakeholders should consider both the impressive growth figures and the auditor's note while evaluating the company's overall financial health and future prospects.

Adcon Capital Services Limited, a finance and investment company, has reported a substantial increase in its annual profit for the fiscal year ended March 31, 2025. The company's net profit soared to ₹218.35 crore, marking a remarkable 607% jump from the previous year's ₹30.91 crore.

Financial Highlights

• Total Revenue: Rose to ₹324.11 crore from ₹167.72 crore in the previous year
• Interest Income: Increased to ₹223.80 crore from ₹165.80 crore
• Earnings Per Share (EPS): Improved to ₹0.07 from ₹0.03

Revised Financial Statements

Adcon Capital Services submitted revised audited results due to changes in the grouping of various components that were overlooked in the previous submission. The company's Board of Directors approved these revised financial results in a meeting held on July 24, 2025.

Key Financial Metrics

Other Notable Points

1. Call Money Receipt: The company received ₹11.69 lakh towards call money on partly paid-up shares during the year.

2. Auditor's Observation: The auditors noted that interest income is not recognized on outstanding advances of ₹504.44 lakh due to insufficient documentation.

3. New Implementations:

   • The company implemented Expected Credit Loss (ECL) provisioning as per Ind AS 109 – Financial Instruments.
   • Standard asset provisioning was carried out as per RBI guidelines.

4. Segment Reporting: As per Indian Accounting Standard (IndAS) 108 "Operating Segment", the company's business falls within a single business segment, "Finance & Investments".

5. Equity: The paid-up equity share capital stood at ₹3,181.28 crore as of March 31, 2025, with a face value of ₹1 per share.

Piyush Saraf, the Whole-Time Director of Adcon Capital Services Limited, signed off on the financial statements, affirming that the auditor's report comes with an unmodified opinion.

The company's strong financial performance, particularly the significant increase in profit, suggests a robust year for Adcon Capital Services Limited in its core finance and investment operations. However, investors should note the auditor's observations regarding interest income recognition on certain outstanding advances and the implementation of new provisioning methods, which may impact future financial statements.