Lerthai Finance Reports Impressive Turnaround with Rs 68.95 Crore Annual Profit

Lerthai Finance Limited has reported a remarkable turnaround in its financial performance for the fiscal year ended March 31, 2023. The company has successfully transformed its bottom line, posting a net profit of Rs 68.95 crore, a significant improvement from the loss of Rs 47.17 crore reported in the previous year.

Financial Highlights

All figures in Rs crore, except EPS in Rs

Quarterly Performance

The company's fourth quarter performance was particularly strong, with a profit of Rs 94.87 crore, compared to a loss of Rs 18.23 crore in the same quarter of the previous year.

Income Sources

It's noteworthy that the company's total income increase was driven entirely by other income, as Lerthai Finance reported no revenue from operations. This suggests that the company's profitability is currently dependent on non-core business activities.

Balance Sheet Strength

Lerthai Finance has significantly strengthened its financial position, with cash and cash equivalents rising to Rs 542.11 crore from Rs 129.90 crore in the previous year. This substantial increase in liquid assets provides the company with a strong financial buffer and potential for future investments or expansion.

Audit Opinion

The statutory auditors, B. D. Jokhakar & Co., have issued an unmodified opinion on the audited results, indicating that the financial statements present a fair and accurate view of the company's financial position.

Recent Financial Trends

While the reported annual results show a strong turnaround, more recent quarterly data suggests some challenges:

• The company reported a net loss of Rs 0.1 crore in the most recent quarter, compared to a profit of Rs 0.8 crore in the same quarter of the previous year.
• Total revenue for the recent quarter stood at Rs 0.5 crore, down from Rs 1.6 crore in the corresponding quarter of the previous year, representing a 68.75% decrease.
• Operating profit remained negative at Rs 0.6 crore, though this is a slight improvement from the Rs 0.7 crore operating loss in the same period last year.

The contrasting annual and recent quarterly results highlight the volatility in Lerthai Finance's performance, underscoring the importance of monitoring the company's future quarters to assess the sustainability of its turnaround.

Lerthai Finance Limited's impressive financial turnaround in FY 2023 marks a significant milestone for the company. However, the recent quarterly data suggests that maintaining this performance may be challenging. Investors and stakeholders will likely be keen to observe how the company navigates the coming quarters and whether it can sustain its profitability in the face of recent headwinds.