Nirlon Limited , a Mumbai-based real estate company specializing in licensing investment properties, has announced robust financial results for the first quarter. The company's performance showcases significant growth across key financial metrics, indicating a strong start to the fiscal year.

Financial Highlights

• Revenue from operations increased by 4.1% year-over-year to ₹162.99 crore
• Total income grew by 5.8% to ₹167.05 crore
• Profit before tax (PBT) surged by 15.7% to ₹90.15 crore
• Profit after tax (PAT) rose by 17.2% to ₹58.41 crore
• Earnings per share (EPS) improved to ₹6.48 from ₹5.53 in the previous year

Profitability and Margin Expansion

Nirlon Limited demonstrated notable improvements in its profitability margins:

The company's other income saw a substantial jump of 192% to ₹4.05 crore, contributing to the overall growth in profitability.

Operational Focus

Nirlon Limited continues to operate solely in the licensing of investment properties segment. This focused approach appears to be yielding positive results, as evidenced by the company's strong financial performance.

Tax Considerations

The company is currently evaluating whether to shift to the new tax regime introduced by the Taxation Laws Amendment Act, 2019. This regime offers domestic companies the option to pay income tax at 22% plus applicable surcharge and cess, subject to certain conditions. Nirlon's decision on this matter could have implications for its future tax liabilities and net profitability.

Financial Position

As of June 30, Nirlon Limited reported:

• Paid-up equity share capital of ₹90.12 crore (Face value of ₹10 per share)
• Other equity of ₹266.81 crore (as of the previous financial year end)

Conclusion

Nirlon Limited's Q1 results reflect a strong start, with significant improvements in revenue, profitability, and operational efficiency. The company's focus on licensing investment properties continues to drive growth, while expanded margins indicate effective cost management and operational optimization. As Nirlon evaluates its tax strategy and continues to leverage its core business strengths, investors and stakeholders will be watching closely to see if this positive momentum can be sustained throughout the fiscal year.

Nirlon Limited , a prominent player in the commercial real estate sector, has reported robust financial results for the first quarter, demonstrating strong growth and operational efficiency.

Financial Highlights

The company announced a total income of INR 1,671.00 million for Q1, marking a 5.8% increase year-over-year. Nirlon's EBITDA reached INR 1,319.00 million, with an improved margin of 78.93%, representing a 186 basis points increase compared to the same quarter last year.

Notably, Nirlon's net profit grew by 17.3% to INR 584.00 million, with the PAT margin expanding to 34.95%. This performance underscores the company's ability to enhance profitability while maintaining steady revenue growth.

Operational Performance

Nirlon Knowledge Park (NKP), the company's flagship 23-acre IT park in Mumbai, continues to be a key driver of success. With 3.08 million sq. ft. of chargeable area, NKP maintained a high occupancy rate of 95.2% during the quarter.

Leasing Activity and Tenant Mix

The company reported significant leasing activity, including renewals and new agreements with major tenants. Key highlights include:

• Citi exercised its option to renew approximately 196,000 sq. ft. at NKP.
• Accenture licensed about 28,000 sq. ft. of space.
• New agreements were reached with Deutsche Bank, Barclays, MUFG, and EY, covering approximately 269,000 sq. ft. of previously vacant space.

These leasing developments demonstrate Nirlon's ability to attract and retain high-quality tenants, further solidifying its position in the commercial real estate market.

Dividend Announcement

Nirlon's Board of Directors has proposed a final dividend of INR 11.00 per share (110%) for the previous fiscal year, subject to approval at the upcoming Annual General Meeting.

Sustainability Achievements

Nirlon continues to prioritize environmental sustainability in its operations. The company has achieved several notable certifications for NKP, including:

• LEED Platinum / Gold Certification (Core & Shell)
• LEED Zero Water certification
• TRUE Platinum certification
• LEED Zero Waste certification for NKP Phases 1 to 4

These certifications underscore Nirlon's commitment to environmentally friendly practices in its commercial developments.

Looking Ahead

With a strong financial performance, high occupancy rates, and a focus on sustainability, Nirlon Limited appears well-positioned in the commercial real estate sector. The company's ability to secure and renew leases with major corporate tenants suggests a positive outlook for future quarters.

As Nirlon prepares for its 66th Annual General Meeting, investors and stakeholders will be keen to see if the company can maintain its growth trajectory and continue to deliver value in the competitive Mumbai real estate market.