Global Capital Markets Limited , a finance and investment company, has reported a significant increase in profit for the first quarter. The company's financial results, approved by the Board of Directors on August 13, showcase a strong performance compared to the same period last year.

Financial Highlights

Revenue Breakdown

The company's revenue for Q1 primarily came from three sources:

1. Interest Income: ₹47.94 lakhs
2. Dividend Income: ₹0.29 lakhs
3. Gains from Trading in Shares and FNO Segment: ₹66.68 lakhs

Performance Analysis

Despite a decrease in total revenue from operations, Global Capital Markets Limited managed to more than double its profit compared to the same quarter last year. This impressive performance can be attributed to a significant reduction in total expenses, which fell from ₹150.69 lakhs to ₹17.58 lakhs.

The company's gains from trading in shares and the FNO (Futures and Options) segment contributed substantially to its revenue, accounting for approximately 58% of the total revenue from operations.

Other Financial Indicators

• Total Comprehensive Income: The company reported a total comprehensive income of ₹104.79 lakhs for the quarter, which includes other comprehensive income of ₹7.37 lakhs.
• Paid-up Equity Share Capital: Remained constant at ₹3,982.96 lakhs with a face value of ₹1 per share.

Segment Information

Global Capital Markets Limited operates in a single business segment of Finance & Investments, as per Indian Accounting Standard (IndAS) 108 "Operating Segment".

Audit Review

The financial results have been reviewed by the Audit Committee and approved by the Board of Directors. The company's auditors, Maheshwari & Co., Chartered Accountants, have carried out a limited review of the financial results.

In their review report, the auditors noted that interest income is not recognized on outstanding advances, and due to insufficient information, they were unable to calculate the interest income to be recognized on such advances.

Global Capital Markets Limited's strong start to the quarter demonstrates its ability to manage expenses effectively while maintaining revenue streams from various financial activities.

Global Capital Markets , a finance and investment company, has reported a significant loss for the financial year ended March 31, 2025, according to its latest financial results. The company's performance was marked by a substantial increase in revenue, but this was overshadowed by a surge in expenses, leading to a net loss.

Financial Performance

Global Capital Markets Limited posted a net loss of ₹85.1 crore for FY2025, a stark contrast to the profit of ₹0.5 crore recorded in the previous year. Despite the loss, the company saw a considerable increase in its revenue from operations, which rose to ₹329.2 crore from ₹119.9 crore in the previous year.

The revenue growth was primarily driven by the sale of shares, which contributed ₹165.8 crore to the total revenue. However, this positive development was offset by a significant increase in total expenses, which surged to ₹413.7 crore from ₹119.8 crore in the previous year.

Key Factors Affecting Performance

A major contributor to the company's expenses was losses from the sale of investments and the Futures and Options (F&O) segment, which amounted to ₹79.2 crore. This substantial loss significantly impacted the company's bottom line.

Auditor's Observations

The company's auditors highlighted concerns regarding unrecognized interest income on outstanding advances and loans. Specifically:

• Interest income was not recognized on outstanding advances of ₹563.1 crore due to insufficient documentation.
• Similarly, interest income was not recognized on loans amounting to ₹148.7 crore, also due to lack of proper documentation.

These observations suggest potential areas for improvement in the company's financial management and record-keeping practices.

Revised Submission and Audit Opinion

Global Capital Markets Limited made a revised submission of its audited results, removing notes related to Expected Credit Loss (ECL) provision from both the financial results and the audit report. Despite these changes, the company declared an unmodified audit opinion, indicating that the auditors did not find any material misstatements in the financial statements.

Segment Information

The company operates in a single business segment of Finance & Investments, as per Indian Accounting Standard (IndAS) 108 "Operating Segment".

Balance Sheet Highlights

As of March 31, 2025, Global Capital Markets Limited reported:

Conclusion

While Global Capital Markets Limited experienced significant revenue growth in FY2025, the substantial increase in expenses, particularly losses from investments and F&O segment, led to a considerable net loss. The company's management will likely need to address the concerns raised by auditors and focus on expense management to improve its financial performance in the coming years.