K Z Leasing and Finance Reports 62.62 Lakh Quarterly Profit Amid Fair Value Losses
KZ Leasing & Finance Limited reported a 14.02% increase in net profit to 62.62 lakh for Q1 FY2024. Revenue from operations surged by 114.22% to 14.46 lakh. Other income rose to 155.98 lakh, boosting total income. However, the company faced a total comprehensive loss of 25.75 lakh due to fair value changes in equity investments amounting to 119.43 lakh. Expenses increased by 66.54% to 85.62 lakh. The basic and diluted EPS improved to 2.06 from 1.81 in the previous quarter.
*this image is generated using AI for illustrative purposes only.
KZ Leasing & Finance Limited, a Gujarat-based financial services company, has released its unaudited financial results for the quarter ended June 30. The company reported a mixed financial performance, with a notable increase in profit despite facing significant fair value losses on equity investments.
Financial Highlights
| Particulars (in Lakh) | Q1 | Q4 | Change (%) |
|---|---|---|---|
| Revenue from Operations | 14.46 | 6.75 | +114.22% |
| Other Income | 155.98 | 82.68 | +88.65% |
| Total Income | 170.44 | 89.43 | +90.58% |
| Total Expenses | 85.62 | 51.41 | +66.54% |
| Profit Before Tax | 84.82 | 48.02 | +76.63% |
| Net Profit | 62.62 | 54.92 | +14.02% |
| EPS (Basic & Diluted) | 2.06 | 1.81 | +13.81% |
Key Takeaways
Profit Growth: The company reported a net profit of 62.62 lakh for the quarter, marking a 14.02% increase from the previous quarter's 54.92 lakh.
Revenue Surge: Revenue from operations more than doubled, reaching 14.46 lakh compared to 6.75 lakh in the previous quarter, representing a substantial growth of 114.22%.
Other Income Boost: Other income saw a significant rise to 155.98 lakh from 82.68 lakh, contributing substantially to the total income.
Increased Expenses: Total expenses rose to 85.62 lakh from 51.41 lakh, with other expenses showing a notable increase to 47.12 lakh.
Earnings Per Share: The basic and diluted earnings per share stood at 2.06, up from 1.81 in the previous quarter.
Fair Value Impact: Despite the profit, the company recorded a total comprehensive loss of 25.75 lakh due to fair value changes in equity investments amounting to 119.43 lakh.
Tax Provisions: The company paid a current tax of 22.19 lakh for the quarter.
Management Approval
The unaudited financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on August 5. The results have undergone a limited review by the company's statutory auditors.
Conclusion
While KZ Leasing & Finance Limited demonstrated strong growth in revenue and operational profit, the significant fair value losses on equity investments impacted its overall financial position. The company's ability to more than double its revenue from operations and increase other income substantially indicates positive operational performance. However, the fair value changes highlight the volatility associated with equity investments in the current market conditions.
Investors and stakeholders may want to closely monitor how the company manages its investment portfolio and operational expenses in the coming quarters, given the substantial increase in both income and expenses.
Historical Stock Returns for KZ Leasing & Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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