Brijlaxmi Leasing and Finance Reports Profit Turnaround in Q1
Brijlaxmi Leasing & Finance, an NBFC, reported a net profit of Rs. 18.71 lakh in Q1, compared to a loss of Rs. 62.81 lakh in the same quarter last year. Total revenue increased by 14.05% to Rs. 56.49 lakh, driven by a 15.69% rise in interest income. The company significantly reduced expenses by 71.06%, contributing to the profit turnaround. EPS improved to Rs. 0.29 from -Rs. 0.97. Auditors noted concerns regarding TDS compliance and non-provision of interest income on certain loans, though management considers these loans fully recoverable.
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Brijlaxmi Leasing & Finance , a non-banking financial company, has reported a significant turnaround in its financial performance for the first quarter. The company's unaudited financial results, approved by its Board of Directors on August 13, reveal a marked improvement in profitability and operational efficiency.
Financial Highlights
| Particulars (in Rs. Lakh) | Q1 Current | Q1 Previous | % Change |
|---|---|---|---|
| Total Revenue | 56.49 | 49.53 | 14.05% |
| Interest Income | 56.34 | 48.70 | 15.69% |
| Total Expenses | 32.50 | 112.32 | -71.06% |
| Net Profit/(Loss) | 18.71 | (62.81) | 129.79% |
| EPS (in Rs.) | 0.29 | (0.97) | 129.90% |
Brijlaxmi Leasing & Finance reported a net profit of Rs. 18.71 lakh for the quarter, marking a substantial improvement from the loss of Rs. 62.81 lakh in the corresponding quarter of the previous year. This represents a remarkable turnaround of 129.79% in the company's bottom line.
Revenue Growth
The company's total revenue from operations increased to Rs. 56.49 lakh, up from Rs. 49.53 lakh in the same quarter last year, reflecting a growth of 14.05%. The primary driver of this growth was the rise in interest income, which increased to Rs. 56.34 lakh from Rs. 48.70 lakh, showing a year-on-year growth of 15.69%.
Operational Efficiency
A significant factor contributing to the profit turnaround was the substantial reduction in total expenses. The company managed to decrease its expenses by 71.06%, from Rs. 112.32 lakh to Rs. 32.50 lakh. This dramatic reduction in expenses played a crucial role in improving the company's profitability.
Improved Earnings Per Share
The earnings per share (EPS) stood at Rs. 0.29, a notable improvement from the negative Rs. 0.97 reported in the same quarter of the previous year. This positive EPS reflects the company's enhanced profitability and potential value creation for shareholders.
Auditor's Observations
The limited review report by the company's statutory auditors, M/s. DBS & Associates, highlighted two areas of concern:
- Non-compliance with TDS provisions under the Income Tax Act.
- Non-provision of interest income on loans to certain parties due to their financial constraints, although management considers these loans fully recoverable.
Management's Perspective
Despite the auditor's observations, the management of Brijlaxmi Leasing & Finance maintains that the loans on which interest income has not been provided are fully recoverable. The company attributes the non-payment of interest by some parties to their current financial difficulties.
The significant improvement in financial performance, particularly the shift from loss to profit, suggests that Brijlaxmi Leasing & Finance may be on a path to financial recovery. However, investors and stakeholders should consider the auditor's observations while assessing the company's overall financial health and future prospects.
Historical Stock Returns for Brijlaxmi Leasing & Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.77% | +2.04% | -8.66% | +17.16% | -14.96% | +608.21% |
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