Kreon Finnancial Services Reports Annual Loss, Seeks Payment Licenses Amid Expansion

Kreon Finnancial Services has reported a significant financial downturn for the fiscal year ended March 31, while simultaneously pursuing strategic initiatives to expand its service offerings.

Financial Performance

The company disclosed a net loss of Rs 414.14 lakhs, a stark contrast to the profit of Rs 62.32 lakhs recorded in the previous year. Despite the setback, Kreon's total revenue from operations showed robust growth, increasing to Rs 2,332.73 lakhs from Rs 1,616.74 lakhs in the prior year.

Key Financial Highlights

Particulars	Current FY (Rs in Lakhs)	Previous FY (Rs in Lakhs)
Revenue from Operations	2,332.73	1,616.74
Total Income	2,665.05	1,637.28
Total Expenses	3,072.38	1,541.02
Net Profit/(Loss)	(414.14)	62.32
Earnings Per Share (Rs)	(2.05)	0.34

The company's expenses saw a significant rise to Rs 3,072.38 lakhs, primarily driven by bad debts of Rs 1,190.54 lakhs and increased employee benefit expenses of Rs 454.44 lakhs.

Strategic Initiatives

In a move to diversify its service portfolio, Kreon's Board of Directors has approved applications for Payment Aggregator (PA) and Prepaid Payment Instrument (PPI) licenses. This strategic decision aims to position the company in the rapidly evolving digital payments landscape.

Corporate Governance

The Board has taken several key decisions to strengthen its governance structure:

Reappointment of auditors:
- M/s. Lakshmmi Subramanian & Associates as Secretarial Auditor for 5 years
- M/s. R. Bhaskaran & Associates as Internal Auditor for 5 years
Postal Ballot approval for reappointment of two independent directors:
- Mrs. Rajashree Santhanam (DIN: 07162071)
- Mrs. Muthusamy Menaka (DIN: 10550690)

Both directors are proposed for reappointment for a term of five consecutive years, effective April 1.

Balance Sheet Strength

As of March 31, Kreon Finnancial Services reported total assets of Rs 6,622.33 lakhs. The company's financial assets, including loans and investments, form a significant portion of its asset base.

Market Impact

The financial results have had a notable impact on the company's market performance. Earnings per share (EPS) declined to negative Rs 2.05, compared to a positive Rs 0.34 in the previous fiscal year.

Despite the challenging year, Kreon Finnancial Services is taking proactive steps to diversify its revenue streams and strengthen its market position. The company's focus on expanding into payment services, coupled with its efforts to maintain strong corporate governance, signals its commitment to long-term growth and stability in the evolving financial services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.39%	-1.42%	+4.44%	+41.43%	+27.15%	+871.05%

Kreon Finnancial Services Limited , a company primarily engaged in the financing business, has reported a significant improvement in its financial performance for the first quarter, along with finalizing arrangements for its upcoming Annual General Meeting (AGM).

Financial Highlights

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

Particulars (in Rs. lakhs)	Q1	Q4	Q1 (Previous Year)
Total Income	1,187.32	842.19	552.25
Revenue from Operations	1,020.73	721.39	479.97
Profit Before Tax	485.11	(74.55)	14.84
Net Profit	377.31	(78.84)	20.80
Earnings Per Share (Rs.)	1.87	(0.39)	0.10

Total income surged to Rs. 1,187.32 lakhs, up from Rs. 842.19 lakhs in the previous quarter.
The company achieved a profit of Rs. 377.31 lakhs, a substantial improvement from a loss of Rs. 78.84 lakhs in the preceding quarter.
Revenue from operations grew to Rs. 1,020.73 lakhs from Rs. 721.39 lakhs.
Fees and commission income increased to Rs. 813.71 lakhs from Rs. 654.61 lakhs.
The company recorded a net gain on fair value changes of Rs. 138.78 lakhs during the quarter.
Total expenses decreased to Rs. 702.22 lakhs compared to Rs. 916.74 lakhs in the previous quarter.
Basic and diluted earnings per share stood at Rs. 1.87, compared to negative Rs. 0.39 in the previous quarter.

Key Financial Metrics

Interest Income: Rs. 13.71 lakhs
Other Operating Income: Rs. 54.54 lakhs
Other Income: Rs. 166.59 lakhs
Finance Costs: Rs. 79.22 lakhs
Employee Benefits Expenses: Rs. 136.26 lakhs

Board Meeting Outcomes

The Board of Directors, in their meeting held on July 25:

Approved the unaudited financial results for Q1, along with an unmodified Limited Review Report from statutory auditors Darpan & Associates.
Approved the final draft of the Board's Report and Corporate Governance Report for the previous financial year.
Finalized arrangements for the 31st Annual General Meeting.

31st AGM Details

Date and Time: Friday, August 29, at 11:00 AM
Mode: Video Conferencing (VC)
Book Closure: August 23 to August 29 (both days inclusive)
E-voting Period: August 26 (09:00 AM) to August 28 (05:00 PM)

The company has not declared any interim dividend.

Kreon Finnancial Services Limited continues to focus on its core financing business, with these results indicating a positive trajectory in its financial performance for the current fiscal year.