Nesco Limited, a diversified company with interests in real estate, exhibition centers, and industrial products, has reported a strong financial performance for the first quarter of the fiscal year. The company's net profit surged by 37.5% year-over-year, reaching ₹96.20 crore, up from ₹69.78 crore in the same period last year.

Revenue Growth Across Segments

Nesco's total income for the quarter stood at ₹221.45 crore, compared to ₹170.91 crore in the corresponding quarter of the previous year, marking a significant increase of 29.6%. The company's revenue from operations saw a substantial rise to ₹193.34 crore, up from ₹141.35 crore in the same quarter last year.

Segment-wise Performance

The company's performance was strong across its various business segments:

Realty

The realty segment continued to be the largest contributor, generating revenue of ₹98.49 crore and a profit before tax and finance costs of ₹84.12 crore.

Bombay Exhibition Center

This segment showed remarkable growth, with revenue increasing to ₹40.42 crore from ₹24.16 crore in the same quarter last year. The profit before tax and finance costs for this segment stood at ₹20.55 crore.

Foods

The foods segment demonstrated significant growth, with revenue more than doubling to ₹47.01 crore from ₹18.97 crore in the previous year's quarter. The segment's profit before tax and finance costs was ₹5.49 crore.

Indabrator

This segment reported revenue of ₹7.42 crore but incurred a small loss of ₹0.45 crore before tax and finance costs.

Profitability and Expenses

The company's profit before tax increased to ₹123.88 crore, up from ₹100.49 crore in the same quarter of the previous year. This growth was achieved despite an increase in total expenses to ₹97.57 crore from ₹70.42 crore in the corresponding quarter last year.

Balance Sheet Strength

Nesco's balance sheet remains robust, with total assets of ₹3,180.67 crore as of June 30. The company's net worth stood at ₹2,725.64 crore, indicating a strong financial position.

Management Commentary

Krishna S. Patel, Chairman and Managing Director of Nesco Limited, stated, "We are pleased with our performance this quarter, which reflects the strength of our diversified business model and the growing demand across our key segments. The significant growth in our exhibition center and foods businesses is particularly encouraging, and we remain committed to capitalizing on these positive trends."

Outlook

With a strong start to the fiscal year and positive momentum across most of its business segments, Nesco Limited appears well-positioned for continued growth. The company's diverse portfolio and strong financial foundation provide a solid base for future expansion and value creation for shareholders.

Note: All figures are based on standalone financial results for the quarter ended June 30, as reported by Nesco Limited.

NESCO Ltd. , a prominent real estate and exhibition center company, has released its fourth-quarter financial results, showcasing a mixed performance. The company also announced its dividend declaration, rewarding shareholders despite a decline in profitability.

Revenue Growth Amidst Profit Decline

NESCO reported a slight increase in its Q4 revenue, which rose to ₹1.92 billion from ₹1.89 billion in the same quarter of the previous year. This modest growth of approximately 1.6% year-over-year indicates the company's ability to maintain its top-line performance in a challenging economic environment.

However, the company faced headwinds in terms of profitability. The earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased to ₹1.07 billion from ₹1.17 billion in the corresponding quarter last year. Consequently, the EBITDA margin contracted to 55.56% from 62.06%, reflecting increased operational costs or pricing pressures.

Net Profit Under Pressure

The bottom line of NESCO saw a more significant impact. Net profit for Q4 declined to ₹886.20 million, down from ₹1.05 billion in the same quarter of the previous year, marking a decrease of about 15.6%. The sequential comparison also showed a decline, with net profit falling from ₹1.10 billion in the previous quarter to the current ₹886.20 million, representing a quarter-over-quarter decrease of approximately 19.4%.

Dividend Declaration

Despite the profit decline, NESCO's board of directors has recommended a final dividend of ₹6.50 per share. This dividend declaration suggests the company's commitment to returning value to its shareholders and maintains its dividend policy even in the face of reduced profitability.

Financial Performance Overview

To better illustrate NESCO's Q4 performance, here's a summary of the key financial metrics:

The financial results reveal a company navigating through challenges, managing to grow its revenue slightly while facing pressure on its margins and profitability. The decision to maintain a substantial dividend payout might be seen as a signal of the management's confidence in the company's financial stability and future prospects, despite the current headwinds in profitability.

Investors and market analysts will likely keep a close eye on NESCO's strategies to improve its operational efficiency and profitability in the coming quarters, as well as any initiatives to leverage its real estate and exhibition center assets to drive growth in a post-pandemic business environment.