India Finsec Limited , a financial services company, has reported a substantial decline in revenue and a shift to net loss for the quarter ended June 30, according to its latest financial results.

Sharp Revenue Decline

The company's total income from operations plummeted to ₹0.88 lakhs in the quarter, representing a staggering 98.5% year-on-year decline from ₹58.93 lakhs in the same quarter last year. The sequential decline was even more pronounced, with a 99.9% drop from ₹1,869.18 lakhs in the previous quarter.

Swing to Net Loss

India Finsec Limited reported a net loss of ₹8.05 lakhs for the quarter, a significant downturn compared to a net profit of ₹33.51 lakhs in the corresponding quarter of the previous year. The company had posted a net profit of ₹535.86 lakhs in the preceding quarter.

Key Financial Metrics

• Earnings Per Share (EPS): The company's EPS turned negative at ₹(0.03), down from ₹0.13 in the same quarter last year and ₹1.84 in the previous quarter.
• Paid-up Equity Share Capital: Remained unchanged at ₹2,919.17 lakhs.

Financial Performance Overview

The following table summarizes the key financial metrics for India Finsec Limited:

The company's financial results show a significant deterioration across all key metrics, with both revenue and profitability experiencing sharp declines.

Disclosure and Transparency

In compliance with regulatory requirements, India Finsec Limited has published its financial results in both English and Hindi newspapers, as disclosed in a filing to the BSE Limited under Regulation 30 of SEBI (LODR) Regulations, 2015.

The company's management did not provide any commentary on the results, nor did they offer a segment-wise performance breakdown or forward-looking guidance in the filing. This leaves investors and analysts to interpret the stark financial figures without additional context on the factors driving the company's performance or its future outlook.

As India Finsec Limited navigates through this challenging period, stakeholders will likely be looking for more detailed information and strategic plans from the company's management in the coming quarters to understand the path forward and potential turnaround strategies.

India Finsec Limited has successfully transitioned to an unregistered Core Investment Company (CIC) following approval from the Reserve Bank of India (RBI) to cancel its Certificate of Registration (CoR) as a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC).

RBI Approval and Strategic Shift

The company received the RBI's approval on July 17, marking a significant milestone in its strategic realignment. This move comes after India Finsec Limited submitted an application for CoR cancellation on April 24, having met the eligibility criteria to operate as an unregistered CIC under regulatory guidelines.

Subsidiary Transformation

A key driver behind this transition was to facilitate the conversion of India Finsec's subsidiary, IFL Finance Limited (formerly IFL Housing Finance Limited), from a Housing Finance Company (HFC) to an NBFC-ICC. This conversion was successfully completed on June 26, aligning with the parent company's strategic objectives.

Regulatory Compliance and Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, India Finsec Limited disclosed these developments to the BSE on July 24. The company had previously intimated the BSE about its intention to surrender the CoR on April 15.

Management Statement

Gopal Bansal, Managing Director of India Finsec Limited, signed off on the regulatory filing, emphasizing the company's commitment to transparent communication with its stakeholders and adherence to regulatory requirements.

This strategic shift positions India Finsec Limited to operate more efficiently within the financial services sector, potentially opening up new opportunities for growth and investment strategies as an unregistered Core Investment Company.