First Custodian Fund Reports ₹20.52 Lakh Net Loss in Q1, Declares 10% Dividend
First Custodian Fund (India) Ltd. reported a net loss of ₹20.52 lakh for Q1, compared to a profit of ₹66.22 lakh in the same quarter last year. Total income fell to negative ₹2.12 lakh from ₹95.78 lakh. Despite the downturn, the company approved a 10% final dividend for the previous financial year. The Board re-appointed M/s. P. C. Shah & Co. as Secretarial Auditors. The company's Annual General Meeting is scheduled for September 25.
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First Custodian Fund (India) Ltd., a stock broking and trading company, has reported a significant downturn in its financial performance for the first quarter. The company's unaudited financial results, approved by the Board of Directors on August 11, reveal a stark contrast to its performance in the same quarter of the previous year.
Financial Performance
The company posted a net loss of ₹20.52 lakh for Q1, a substantial decline from the profit of ₹66.22 lakh recorded in the corresponding quarter of the previous year. This represents a negative swing of ₹86.74 lakh in the company's bottom line.
The total income for the quarter saw a dramatic fall, plummeting to a negative ₹2.12 lakh from ₹95.78 lakh in the corresponding quarter of the previous year. This decline was primarily driven by:
- A sharp drop in net sales from operations, which fell to ₹1.03 lakh from ₹3.40 lakh.
- Other operating income turning negative at ₹3.15 lakh, compared to a positive ₹92.38 lakh in the previous year's quarter.
Expense Management
Despite the significant revenue decline, the company managed to slightly reduce its total expenses:
- Total expenses decreased to ₹18.40 lakh from ₹19.56 lakh in the previous year's quarter.
- Employee benefits expenses saw a minor reduction to ₹5.37 lakh from ₹5.68 lakh.
- Other expenses also decreased to ₹10.17 lakh from ₹11.30 lakh.
Key Financial Metrics
| Particulars | Q1 (₹ in lakh) | Q1 Previous Year (₹ in lakh) |
|---|---|---|
| Net Sales | 1.03 | 3.40 |
| Other Operating Income | -3.15 | 92.38 |
| Total Income | -2.12 | 95.78 |
| Total Expenses | 18.40 | 19.56 |
| Net Profit/(Loss) | -20.52 | 66.22 |
| Earnings Per Share (in ₹) | -1.37 | 4.41 |
The earnings per share (EPS) for the quarter stood at -₹1.37, compared to ₹4.41 in the same quarter of the previous year.
Dividend Declaration
Despite the challenging quarter, the Board of Directors has approved a final dividend of 10% (Re. 1 per equity share) for the previous financial year. This decision was announced in the corporate filing dated August 11.
Annual General Meeting
The company has scheduled its Thirty Ninth Annual General Meeting for September 25, where shareholders will have the opportunity to discuss the company's performance and future strategies.
Auditor Reappointment
In other corporate governance matters, the Board has re-appointed M/s. P. C. Shah & Co., Practicing Company Secretaries, as the Secretarial Auditors for the upcoming term. This reappointment underscores First Custodian Fund's commitment to maintaining robust corporate governance practices.
As First Custodian Fund (India) Ltd. navigates through these challenging financial times, stakeholders will be keenly watching for signs of recovery and the effectiveness of any strategic measures the company may implement to reverse the current downturn.
Historical Stock Returns for First Custodian Fund
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.06% | +4.48% | +1.06% | -22.36% | -26.05% | +174.57% |
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