Advik Capital Reports Mixed Q1 Results: Standalone Profit Dips, Revenue Surges
Advik Capital's Q1 results show contrasting performance. Standalone revenue increased 49% to ₹739.81 crore, but net profit fell 21% to ₹174.40 crore. Consolidated results were more challenging, with net profit dropping 79.5% to ₹48.06 crore despite revenue growth to ₹740.96 crore. The Loan Division remained the primary revenue generator, while the Securities/Share Division reported a loss. No interim dividend was recommended.
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Advik Capital , a company operating in the financing and securities trading sectors, has released its financial results for the first quarter, revealing a mixed performance across its standalone and consolidated operations.
Standalone Performance
On a standalone basis, Advik Capital reported a net profit of ₹174.40 crore for Q1, marking a 21% decline from ₹221.60 crore in the corresponding quarter of the previous year. Despite the profit dip, the company's revenue from operations showed significant growth, increasing to ₹739.81 crore from ₹495.58 crore year-over-year, representing a robust 49% surge.
The company's total income, including other income, stood at ₹740.57 crore, compared to ₹495.93 crore in the same quarter last year. However, total expenses also saw a substantial rise, reaching ₹480.46 crore, up from ₹218.56 crore in the same period last year.
Consolidated Results
On a consolidated basis, which includes the performance of its wholly-owned subsidiary Advikca Finvest Limited, the company's results showed a more pronounced decline. Consolidated net profit dropped to ₹48.06 crore from ₹234.99 crore in the previous year's quarter, marking a significant 79.5% decrease.
Consolidated revenue from operations, however, showed growth, rising to ₹740.96 crore from ₹551.78 crore. The total consolidated income stood at ₹741.72 crore, compared to ₹571.61 crore in the same quarter last year.
Segment Performance
Advik Capital operates in two main segments: Securities/Share Division and Loan Division. The Loan Division continued to be the primary revenue generator, contributing ₹739.81 crore to the total revenue. The Securities/Share Division, however, reported a segment loss before tax and interest of ₹122.93 crore.
Financial Highlights
| Particulars (in ₹ crore) | Q1 (Standalone) | Q1 (Previous Year Standalone) | Q1 (Consolidated) | Q1 (Previous Year Consolidated) |
|---|---|---|---|---|
| Revenue from Operations | 739.81 | 495.58 | 740.96 | 551.78 |
| Total Income | 740.57 | 495.93 | 741.72 | 571.61 |
| Net Profit | 174.40 | 221.60 | 48.06 | 234.99 |
| Basic EPS (in ₹) | 0.03 | 0.05 | 0.01 | 0.06 |
Management Commentary
The Board of Directors reviewed and approved these unaudited financial results. They have not recommended any interim dividend for the quarter.
Outlook
While Advik Capital has shown strong revenue growth, the decline in profitability, particularly on a consolidated basis, may be a point of concern for investors. The company's performance in its securities trading segment, which reported losses, could be an area to watch in the coming quarters.
As Advik Capital continues to navigate the dynamic financial services landscape, stakeholders will be keen to see how the company addresses the challenges in its trading segment and leverages its strong revenue growth to improve bottom-line performance in the future quarters.
Historical Stock Returns for Advik Capital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.68% | -2.67% | 0.0% | -21.08% | -51.66% | +210.64% |
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