India Lease Development Limited (ILDL) has reported a mixed financial performance for the second quarter ended September 30, with a notable impact from the sale of investments.

Key Financial Highlights

Quarterly Performance

ILDL reported a net profit of ₹1.33 lakhs for Q2, a significant improvement from the loss of ₹5.52 lakhs in the previous quarter. The company's total income for the quarter stood at ₹14.83 lakhs, primarily driven by interest income of ₹14.08 lakhs and dividend income of ₹0.18 lakhs.

Investment Sale Impact

During the quarter, ILDL sold quoted equity investments in Jayabharat Credit Limited based on an independent valuation. This transaction resulted in a loss of ₹35.80 lakhs, which was recorded in Other Comprehensive Income. The company noted that while the prevailing quoted market prices for these shares were higher, the sale was executed at a lower price due to thin trading volumes on the stock exchange.

Half-Year Results

For the half-year period ended September 30, ILDL reported:

• A net loss of ₹4.19 lakhs
• Total income of ₹27.59 lakhs
• Total comprehensive loss of ₹39.99 lakhs, including the impact of the investment sale

Balance Sheet Position

As of September 30, ILDL's financial position showed:

• Total assets of ₹1,034.55 lakhs
• Investments comprising ₹822.97 lakhs
• Cash and cash equivalents of ₹17.97 lakhs

Management Commentary

The company's management has prepared the financial results on a going concern basis, despite cumulative losses. They believe that the realization of assets will generate sufficient funds to meet liabilities.

Auditor's Review

The statutory auditors have conducted a limited review of the financial results and expressed an unmodified opinion. They highlighted the sale of quoted investments as an emphasis of matter in their report.

Future Outlook

ILDL has noted that fair value changes in long-term investments will be considered in the audited accounts for the year ending March 31. The management does not expect the effect to be material.

Investors and stakeholders should note that while the company has shown a quarterly profit, the overall half-yearly performance remains challenged, primarily due to the investment sale impact. The company's ability to generate sustainable profits and manage its investment portfolio will be crucial factors to watch in the coming quarters.

India Lease Development Limited (ILDL) has reported a significant increase in net losses for the first quarter, according to the company's latest financial results.

Financial Performance

The company's unaudited financial results for the quarter reveal:

• Net loss: ₹11.72 lakhs
• Previous quarter net loss: ₹5.69 lakhs
• Same quarter last year net loss: ₹6.60 lakhs

This represents a substantial year-on-year increase in losses of approximately 77.6%.

The total comprehensive income for the quarter showed a loss of ₹56.02 lakhs, indicating a broader impact on the company's financial position beyond the net loss figure.

Balance Sheet Overview

• Paid-up equity share capital: ₹1,470.02 lakhs
• Reserves: -₹423.49 lakhs

The negative balance in reserves highlights ongoing financial challenges for ILDL.

Business Operations

ILDL, primarily engaged in the financing business, has discontinued fresh hire purchase and leasing operations. Despite cumulative losses, the management remains optimistic about the company's ability to continue as a going concern, citing potential asset realization to meet liabilities.

Auditor's Review

Key points from the statutory auditors' unmodified review report:

• Fair value changes in long-term investments have not been incorporated in these results
• These changes will be considered in the audited accounts for the year
• Management does not expect a material impact on the financial statements

Corporate Governance

In compliance with regulatory requirements, ILDL:

• Closed its trading window from July 1
• Reopened it on August 13

This move aligns with standard practices to prevent insider trading during sensitive financial periods.

Looking Ahead

While India Lease Development faces challenges, including widening losses and negative reserves, the company continues to operate and report its financial results. The management's focus on asset realization and the auditor's unmodified review suggest ongoing efforts to navigate the current financial situation.

Investors and stakeholders will likely keep a close eye on ILDL's future quarters to assess any potential turnaround in its financial performance.

Note: The financial figures mentioned are based on the unaudited results as reported by India Lease Development Limited.