Khandelwal Extractions Reports 53.5% Drop in Q2 Profit to Rs 5.72 Lakhs
Khandelwal Extractions Limited experienced a significant decline in its Q2 FY2025-26 financial performance. Revenue from operations decreased by 30.91% to Rs 14.95 lakhs, while net profit fell by 53.50% to Rs 5.72 lakhs compared to the same quarter last year. The company's EPS dropped to Rs 0.67 from Rs 1.45. For the half-year, net profit decreased by 44.12% to Rs 13.3 lakhs. Despite profit declines, total assets increased slightly to Rs 366.02 lakhs, with a notable rise in bank balances to Rs 210.71 lakhs.
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Khandelwal Extractions Limited , a company engaged in the extractions industry, has reported a significant decline in its financial performance for the second quarter. The company's unaudited financial results, approved by the Board of Directors on November 13, reveal a notable decrease in profitability despite a marginal increase in total assets.
Financial Highlights
| Particulars (in Rs. Lakhs) | Q2 FY2025-26 | Q2 FY2024-25 | % Change |
|---|---|---|---|
| Revenue from Operations | 14.95 | 21.64 | -30.91% |
| Total Revenue | 19.55 | 25.51 | -23.36% |
| Net Profit | 5.72 | 12.30 | -53.50% |
| EPS (in Rs., not annualized) | 0.67 | 1.45 | -53.79% |
Quarterly Performance Analysis
Khandelwal Extractions experienced a sharp decline in its quarterly performance. The company's revenue from operations decreased by 30.91% to Rs 14.95 lakhs, compared to Rs 21.64 lakhs in the same quarter of the previous fiscal year. This reduction in operational revenue significantly impacted the company's bottom line.
The net profit for the quarter stood at Rs 5.72 lakhs, marking a substantial 53.50% decrease from Rs 12.30 lakhs reported in the corresponding quarter of the previous year. This decline in profitability is reflected in the company's earnings per share (EPS), which dropped to Rs 0.67 from Rs 1.45 year-over-year.
Half-Yearly Performance
For the half-year ended September 30, Khandelwal Extractions reported a cumulative net profit of Rs 13.3 lakhs, down from Rs 23.8 lakhs in the same period of the previous year, representing a 44.12% decrease.
Balance Sheet Overview
As of September 30, the company's total assets stood at Rs 366.02 lakhs, showing a modest increase from Rs 351.82 lakhs reported at the end of the previous fiscal year on March 31. This growth in assets is primarily attributed to an increase in current assets, particularly in bank balances and other current assets.
Liquidity Position
The company's cash and cash equivalents decreased to Rs 12.09 lakhs as of September 30, from Rs 17.25 lakhs at the beginning of the fiscal year. However, the overall bank balances, including fixed deposits, increased significantly to Rs 210.71 lakhs from Rs 196.71 lakhs, indicating a strategic shift towards more liquid assets.
Conclusion
Khandelwal Extractions Limited faces challenges in maintaining its profitability amidst declining revenues. The significant drop in both quarterly and half-yearly profits suggests potential headwinds in the company's core operations. However, the increase in total assets and bank balances indicates that the company is maintaining a stable financial position despite the profit decline.
Historical Stock Returns for Khandelwal Extractions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.94% | +20.30% | +106.59% | +71.38% | +43.30% | +1,001.14% |
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