Kaushalya Infrastructure Reports Q1 Profit, Appoints New Secretarial Auditor

Kaushalya Infrastructure Development Corporation Ltd (KIDCL) has reported a turnaround in its financial performance for the first quarter. The company's board meeting on August 14 revealed significant improvements in both standalone and consolidated results, along with key corporate decisions.

Financial Highlights

Standalone Performance

• Revenue from operations stood at Rs 2.16 lakhs, slightly down from Rs 2.20 lakhs in the same quarter last year.
• Net loss narrowed to Rs 45.42 lakhs, compared to Rs 74.68 lakhs loss in the previous year's quarter.
• Other income surged to Rs 102.64 lakhs, primarily due to recovery of long-standing dues.

Consolidated Performance

• Consolidated revenue remained stable at Rs 2.16 lakhs.
• The company reported a net profit of Rs 41.18 lakhs, a significant improvement from a loss of Rs 69.86 lakhs in the same quarter last year.

Key Financial Metrics

All figures in Rs lakhs

Operational Highlights

• The company recovered long-standing dues of Rs 92.37 lakhs from debtors during the quarter.
• This recovery led to a reversal of doubtful debt provisions, significantly boosting other income.
• An amount of Rs 28.31 lakhs was classified as bad debt and included under other expenses.

Corporate Updates

1. New Secretarial Auditor: The Board approved the appointment of M/s. B. K. Barik & Associates as Secretarial Auditors for a five-year term, subject to shareholder approval.

2. Annual General Meeting: The 33rd Annual General Meeting is scheduled for September 24, to be held via video conferencing.

3. Book Closure: The register of members and share transfer books will remain closed from September 18 to September 24 (both days inclusive) for the AGM.

4. E-voting Scrutinizer: Md. Shahnawaz, Practicing Company Secretary, has been appointed as the scrutinizer for the e-voting process at the upcoming AGM.

Management Commentary

While specific management quotes were not provided, the financial results indicate a positive trend in the company's performance, particularly in terms of debt recovery and profitability on a consolidated basis.

Looking Ahead

Kaushalya Infrastructure's turnaround, especially on a consolidated level, suggests improved operational efficiency and financial management. The significant reduction in losses and the move to profitability on a consolidated basis are encouraging signs for the company's stakeholders. However, the flat revenue growth indicates that challenges remain in the core business operations.

Investors and stakeholders will likely be watching closely to see if the company can sustain this positive momentum in the coming quarters, particularly in growing its operational revenue alongside the improvements in profitability.