Garnet International Reports Robust Q1 Results with 3024% Surge in Standalone Profit

Garnet International Limited , a prominent player in the financial sector, has announced its unaudited financial results for the first quarter, showcasing a remarkable improvement in its performance.

Standalone Performance Highlights

The company reported a substantial increase in standalone profit, which soared to Rs 144.03 crore for Q1, compared to Rs 4.61 crore in the corresponding quarter of the previous year, marking an impressive growth of 3024%. This significant jump in profit can be primarily attributed to a robust net gain on fair value changes.

Garnet International's total standalone income for the quarter stood at Rs 163.26 crore, driven mainly by net gains on fair value changes. The company's expenses were well-managed at Rs 19.23 crore, resulting in a profit before tax of Rs 144.03 crore.

Consolidated Performance

On a consolidated basis, Garnet International reported a profit of Rs 129.16 crore for Q1, compared to Rs 77.07 crore in the same quarter last year, representing a growth of 67.6%. The total consolidated income for the quarter was Rs 212.81 crore.

Key Financial Metrics

Corporate Actions and Developments

1. Annual General Meeting: The Board has scheduled the 43rd Annual General Meeting for September 30.

2. Book Closure: The Register of Members and Share Transfer Books will remain closed from September 24 to September 30 (both days inclusive) for the purpose of the Annual General Meeting.

3. Preferential Issue Update: Garnet International submitted a deviation statement for its preferential issue of convertible equity warrants worth Rs 35.37 crore. As of June 30, the company had received 25% of the issue size, amounting to Rs 8.84 crore. The statement reported no deviations in fund utilization, with allocations made across strategic investments (Rs 7.79 crore utilized), subsidiary investment (Rs 0.58 crore utilized), and general corporate purposes (Rs 0.23 crore utilized).

4. Subsidiary Performance: The company's subsidiary, Whitewall India Private Limited, contributed to the consolidated results with a total revenue of Rs 49.55 lakh and a profit after tax of Rs 0.81 lakh for the quarter.

5. Associate Company Impact: The financial results include the Group's share of loss of Rs 15.69 lakh from its associate company, Sukartik Clothing Private Limited.

Garnet International's strong performance in Q1 demonstrates its resilience and strategic financial management. The company's focus on maximizing returns through fair value changes has significantly boosted its profitability. As the company continues to execute its growth strategies and utilize the funds raised through the preferential issue, investors and stakeholders will be keenly watching its future performance and market positioning.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 14. The company's auditors, Sarda Soni Associates LLP, have conducted a limited review of these results in accordance with the applicable regulations.