IndiaNivesh Limited Reports Mixed Q1 Results Amid Ongoing Financial Challenges
IndiaNivesh Limited's Q1 results show a mixed performance. Standalone net profit decreased to Rs 17.49 lakhs from Rs 182.25 lakhs year-over-year, with revenue falling to Rs 32.55 lakhs from Rs 194.06 lakhs. Consolidated results show a net loss of Rs 95.07 lakhs compared to a profit of Rs 200.98 lakhs in the previous year. Segment revenues declined in both Investment & Trading and Financing activities. The company's subsidiary has restarted NSE Cash Segment trading. Auditors raised concerns about unprovided interest on loans and lack of impairment testing for goodwill.
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IndiaNivesh Limited , a diversified financial services company, has released its unaudited financial results for the first quarter, revealing a mixed performance across its standalone and consolidated operations.
Standalone Performance
On a standalone basis, IndiaNivesh Limited reported a net profit of Rs 17.49 lakhs, a significant decrease from Rs 182.25 lakhs in the corresponding quarter of the previous year. The company's revenue from operations declined sharply to Rs 32.55 lakhs, compared to Rs 194.06 lakhs in the same period last year.
| Particulars (Standalone) | Current Quarter | Previous Year Quarter |
|---|---|---|
| Revenue from Operations | 32.55 | 194.06 |
| Net Profit | 17.49 | 182.25 |
The company's total income, including other income, stood at Rs 32.63 lakhs for the quarter, down from Rs 194.06 lakhs in the same period last year.
Consolidated Results
The consolidated financial results paint a more challenging picture for the IndiaNivesh Group. The company reported a consolidated net loss of Rs 95.07 lakhs, contrasting with a profit of Rs 200.98 lakhs in the same quarter of the previous year.
| Particulars (Consolidated) | Current Quarter | Previous Year Quarter |
|---|---|---|
| Total Income | 64.53 | 240.10 |
| Net Profit/(Loss) | (95.07) | 200.98 |
The group's total income on a consolidated basis decreased to Rs 64.53 lakhs from Rs 240.10 lakhs year-over-year.
Segment Performance
The company's segment-wise performance showed declines across its main business activities:
- Investment & Trading Activities: Revenue dropped to Rs 0.02 lakhs from Rs 130.08 lakhs.
- Financing Activities: Revenue decreased to Rs 32.53 lakhs from Rs 63.98 lakhs year-over-year.
Operational Update
IndiaNivesh Shares and Securities Private Limited, a wholly-owned subsidiary, has restarted its trading terminals on the NSE Cash Segment. However, approval from the Bombay Stock Exchange remains pending.
Financial Position and Auditor's Observations
The auditors have raised concerns regarding unprovided interest on outstanding loans totaling Rs 132.35 crores. Additionally, they noted that impairment testing for goodwill worth Rs 20.36 crores in a subsidiary has not been conducted as required by accounting standards.
The company's management stated that they would inject funds as needed to meet various costs and losses, asserting that the company will be able to meet its future obligations.
Conclusion
IndiaNivesh Limited faces significant challenges as evidenced by its latest quarterly results. The substantial decline in revenues and profitability, coupled with auditor concerns, underscores the need for strategic measures to improve the company's financial health and operational performance in the coming quarters.
Historical Stock Returns for Indianivesh
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.54% | -4.57% | -6.80% | -29.09% | -38.07% | -65.09% |
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