Orchasp Limited Reports 123% Revenue Surge in Q1 Amid Auditor Concerns
Orchasp Limited announced Q1 financial results with significant growth. Revenue increased by 123% to Rs 775.19 lakhs, and Profit After Tax more than doubled to Rs 54.22 lakhs compared to the previous year. However, auditors raised concerns about a non-operational Portuguese subsidiary, unpaid statutory dues, and outstanding receivables and payables. The company acknowledged these issues and is working to resolve them.
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Orchasp Limited has announced its financial results for the first quarter, showcasing significant revenue growth despite facing auditor qualifications.
Strong Revenue Growth
The company reported a substantial increase in revenue from operations for the quarter. Orchasp's revenue stood at Rs 775.19 lakhs, marking a remarkable 123% rise compared to Rs 347.77 lakhs in the corresponding quarter of the previous year.
Improved Profitability
Profit after tax (PAT) reached Rs 54.22 lakhs, more than doubling from Rs 22.83 lakhs in the same period last year. This represents a significant improvement in the company's bottom line.
Financial Highlights
| Particulars (in lakhs) | Current Quarter | Previous Quarter | YoY Change |
|---|---|---|---|
| Revenue from Operations | 775.19 | 347.77 | 123% |
| Total Expenses | 705.03 | 322.82 | 118% |
| Profit Before Tax | 72.68 | 27.46 | 165% |
| Profit After Tax | 54.22 | 22.83 | 137% |
Auditor Qualifications
Despite the strong financial performance, the company's auditors, JMT & Associates, have raised several concerns in their limited review report:
Investment in Portuguese Subsidiary: The auditors highlighted a Rs 6,825.00 lakhs investment in Cybermate International, Unipessoal, LDA, a wholly-owned subsidiary in Portugal. This subsidiary has been non-operational for over four years and faces potential cancellation of incorporation due to statutory filing defaults.
Unpaid Statutory Dues: The company has not paid statutory dues for Provident Fund and Employees' State Insurance for the quarter.
Outstanding Receivables and Payables: Trade receivables and payables have been outstanding for over six months without external confirmations.
Management Response
Orchasp Limited acknowledged these issues in their statement to the stock exchanges. The company attributed the delays to adverse business conditions and stated that they are working to resolve the matter concerning the Portuguese subsidiary. Management expressed confidence in recovering substantial receivables in the coming quarter.
Conclusion
While Orchasp Limited has demonstrated strong revenue growth and improved profitability, the auditor's qualifications raise concerns about the company's financial management and compliance practices. Investors and stakeholders will likely monitor how the company addresses these issues in the coming quarters.
Historical Stock Returns for Orchasp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.69% | -8.49% | -17.56% | -3.96% | -18.72% | -18.72% |
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