Nidhi Granites Limited, a company engaged in the granite industry, has reported a significant decline in revenue and a return to loss for the first quarter.

Financial Performance

The company's total income for the quarter stood at ₹10.16 lakhs, representing a sharp 73.4% decrease from ₹38.22 lakhs in the previous quarter. This substantial drop in revenue has impacted the company's bottom line, resulting in a net loss after tax of ₹28.10 lakhs, compared to a profit of ₹25.89 lakhs in the preceding quarter.

Key Financial Metrics

Figures in ₹ lakhs, except EPS

The basic and diluted earnings per share (EPS) for the quarter turned negative at ₹0.35, compared to a positive ₹0.32 in the previous quarter.

Year-on-Year Comparison

While the quarter-on-quarter performance shows a significant decline, there is a marginal improvement when compared to the same quarter of the previous year. In Q1 of the previous year, the company had reported a loss in total income of ₹8.32 lakhs and a net loss after tax of ₹25.24 lakhs.

Balance Sheet Position

The company's equity share capital remained unchanged at ₹800 lakhs, providing a stable capital base despite the challenging quarter.

Conclusion

Nidhi Granites Limited's first quarter results reflect a challenging period for the company, with a substantial decline in revenue and a return to loss. Investors and stakeholders will likely be watching closely to see how the company plans to address these challenges and improve its performance in the coming quarters.

The company's ability to manage costs, potentially diversify revenue streams, and capitalize on any market opportunities will be crucial for its financial recovery and future growth prospects.

Nidhi Granites Limited has reported a significant improvement in its consolidated financial performance for the first quarter, while also announcing strategic moves to expand its business portfolio.

Consolidated Financial Highlights

The company's consolidated performance for Q1 showed remarkable growth:

Nidhi Granites' consolidated revenue from operations more than doubled to ₹1,981.05 lakhs, compared to ₹928.48 lakhs in the same quarter last year. The company's net profit saw an even more impressive surge, rising by 197.56% to ₹224.03 lakhs from ₹75.29 lakhs in Q1 FY25.

Standalone Performance

On a standalone basis, however, the company faced some challenges:

• Revenue from operations stood at ₹10.16 lakhs, compared to nil in Q1 FY25.
• The company reported a net loss of ₹28.10 lakhs, in contrast to a profit of ₹25.89 lakhs in the same quarter last year.

Strategic Acquisition

A key development during the quarter was Nidhi Granites' acquisition of Auro Fintech Pvt Ltd. The company acquired a 100% equity stake in Auro Fintech for ₹60.57 lakhs on April 1, making it a wholly-owned subsidiary. This acquisition has led to the introduction of a new business segment: Financial Technology and related services.

Segment Performance

The company now operates in four reportable business segments:

1. Construction material
2. Paper and Paperboard
3. Garments
4. Financial Technology and related services

The newly added Financial Technology segment contributed significantly to the quarter's performance, with a revenue of ₹465.52 lakhs and a segment result of ₹224.45 lakhs before tax and interest.

Management Changes

Nidhi Granites also announced changes in its key management personnel. Mrs. Krinisha Sanghvi has been appointed as the new Company Secretary and Compliance Officer, effective August 13. Mrs. Sanghvi, a commerce and law graduate with ACS qualification, brings 1.5 years of experience in corporate secretarial matters to the role. She replaces Ms. Swapna Shivashankaran, who resigned on July 31.

Looking Ahead

The strong consolidated performance, coupled with the strategic acquisition of Auro Fintech, positions Nidhi Granites for potential growth in diverse sectors. The company's expansion into the financial technology sector could open up new revenue streams and business opportunities in the coming quarters.