Crest Ventures Limited , a diversified financial services company, reported a significant decline in its consolidated net profit for the second quarter ended September 30, 2023.

Financial Performance

The company's consolidated net profit fell 78% to Rs 37.35 crore in Q2 FY2024, compared to Rs 172.43 crore in the same quarter last year. Total revenue decreased to Rs 295.41 crore from Rs 354.65 crore year-over-year.

For the half year ended September 30, 2023, Crest Ventures posted a consolidated net profit of Rs 294.75 crore, down 56.5% from Rs 677.22 crore in H1 FY2024.

Segment Performance

The company operates in three main segments:

1. Investing & Financial Activities: Revenue of Rs 404.61 crore in H1 FY2024
2. Broking & Related Activities: Revenue of Rs 134.01 crore
3. Real Estate & Related Activities: Revenue of Rs 387.87 crore

Balance Sheet Highlights

As of September 30, 2023:

The company's net worth increased from Rs 11,948.10 crore as of March 31, 2023.

Other Key Developments

The Board of Directors has approved a proposal to raise funds through the issuance of Non-Convertible Debentures (NCDs) for an amount not exceeding Rs 100 crore on a private placement basis.

Management Commentary

Vijay Choraria, Managing Director of Crest Ventures Limited, stated, "While our Q2 results reflect the challenging market conditions, we remain focused on our long-term growth strategy. The approval to raise funds through NCDs will provide us with additional capital to pursue strategic opportunities and strengthen our market position."

The company's performance in the coming quarters may depend on the overall economic recovery and its ability to capitalize on growth opportunities across its diverse business segments.

Crest Ventures Limited (CVL) has taken a significant step in expanding its real estate portfolio by signing a Memorandum of Understanding (MoU) with Vensco Projects LLP for a joint development project in Chembur, Mumbai. The announcement outlines plans for an ambitious development spanning approximately 11,000 square meters of amalgamated land.

Project Details

The proposed development, referred to as the 'Chembur Project', is set to be executed under the Development Control and Promotion Regulations (DCPR) 2034, including applicable SRA (Slum Rehabilitation Authority) Regulations. This strategic move by Crest Ventures signals the company's intent to capitalize on Mumbai's real estate landscape.

Key Points of the Agreement

Future Steps and Implications

The MoU represents a preliminary understanding between Crest Ventures and Vensco Projects. As stated in the company's disclosure, the agreement is subject to the execution of definitive agreements and receipt of necessary approvals. Crest Ventures has indicated that it may undertake this project either directly or through a subsidiary or affiliate.

This move aligns with Crest Ventures' strategy to expand its presence in the real estate sector, potentially enhancing its market position and creating value for shareholders. The Chembur area, known for its strategic location and ongoing infrastructure developments, could prove to be a lucrative choice for this joint venture.

Investors and market watchers will be keen to observe how this project unfolds and its potential impact on Crest Ventures' financial performance in the coming quarters. The company has committed to keeping the exchanges informed of further material developments regarding this project.

As the real estate market in Mumbai continues to evolve, particularly with the implementation of DCPR 2034, this joint development initiative could position Crest Ventures favorably in the competitive landscape of urban development projects.