Motor & General Finance Reports Profit in Q1 FY24, Reversing Previous Losses

Motor & General Finance Limited (MGF) has announced its financial results for the first quarter of the fiscal year 2024, ending June 30, 2023, showing a turnaround in its standalone performance while still facing challenges on a consolidated basis.

Standalone Performance

MGF reported a standalone net profit of ₹1.77 lakh for Q1 FY24, marking a significant improvement from the loss of ₹99.09 lakh in the previous quarter and a loss of ₹6.27 lakh in the same quarter last year. This positive shift indicates a recovery in the company's core operations.

The company's revenue from operations saw an uptick, rising to ₹149.11 lakh from ₹135.69 lakh in the previous quarter, reflecting a growth of 9.89% in its primary business activities.

Operational Efficiency

A notable aspect of MGF's Q1 performance was the substantial reduction in total expenses. On a standalone basis, expenses were reported at ₹207.91 lakh, significantly lower than the ₹400.61 lakh recorded in the previous quarter. This considerable decrease of 48.10% in expenses played a crucial role in the company's return to profitability.

Consolidated Results

Despite the positive standalone results, MGF faced challenges on a consolidated basis. The company reported a marginal consolidated net loss of ₹0.20 lakh for the quarter, indicating that some of its subsidiaries or associated companies might still be navigating through difficult market conditions.

Business Focus

Motor & General Finance Limited primarily operates in the lease, renting, and sale of immovable property sector. The improvement in revenue suggests a potential uptick in demand for its services or successful execution of property transactions during the quarter.

Key Financial Metrics

The earnings per share (EPS) improved to ₹0.00 from (₹0.26) in the previous quarter, aligning with the company's return to profitability.

Corporate Actions

The company's Board of Directors convened on August 10, 2023, to review and approve the financial results. Following the announcement, the trading window for the company's securities reopened on August 14, 2023, in compliance with regulatory requirements.

While Motor & General Finance has shown signs of recovery in its standalone operations, the marginal consolidated loss suggests that the company may still face challenges in its overall business environment. Investors and stakeholders will likely be watching closely to see if this positive trend in standalone performance can be sustained and translated into consolidated profits in the coming quarters.