Paragon Finance Limited Reports Robust Q1 Results with 39.8% Revenue Surge
Paragon Finance Limited, an NBFC, announced robust Q1 financial results. Total income from operations increased by 39.8% year-over-year to ₹2.20 crore, while net profit surged 38.6% to ₹1.40 crore. Earnings per share improved to ₹3.29 from ₹2.37 in the same quarter last year. The company showed significant recovery from the previous quarter's loss of ₹0.82 crore. Revenue growth was driven by increases in other income and net gain on fair value changes, although interest income declined. Total expenses rose by 32% to ₹0.71 crore. The NBFC continued to reverse impairment provisions, indicating potential improvements in asset quality.
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Paragon Finance Limited , a non-banking financial company (NBFC), has announced strong financial results for the first quarter, demonstrating significant growth and recovery from the previous quarter.
Financial Highlights
- Total income from operations increased by 39.8% year-over-year to ₹2.20 crore
- Net profit surged 38.6% to ₹1.40 crore
- Earnings per share improved to ₹3.29 from ₹2.37 in the same quarter last year
- Total comprehensive income stood at ₹1.86 crore, despite a 14.1% year-over-year decline
Revenue Breakdown
The company's revenue growth was primarily driven by increases in other income and net gain on fair value changes. However, interest income saw a decline of 17.1% year-over-year to ₹0.29 crore.
| Revenue Component | Amount (₹ in crore) | YoY Change |
|---|---|---|
| Interest Income | 0.29 | -17.1% |
| Net Gain on Fair Value Changes | 0.79 | 7.8% |
| Other Income | 1.11 | 136.6% |
Expenses and Profitability
Total expenses rose by 32% to ₹0.71 crore, with notable increases in depreciation and other expenses. Despite this increase, the company managed to improve its profitability significantly.
Recovery from Previous Quarter
Paragon Finance Limited showed a remarkable turnaround from the previous quarter, where it had reported a net loss of ₹0.82 crore. This quarter's net profit of ₹1.40 crore represents a strong recovery and positive momentum for the company.
Asset Quality Improvement
The NBFC continued to reverse impairment provisions, indicating potential improvements in asset quality. This could be a positive sign for the company's financial health and risk management practices.
Management Commentary
The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting. Sanjay Kumar Gupta, Whole Time Director & Company Secretary, signed off on the results, which were prepared in accordance with Indian Accounting Standards (Ind AS).
Conclusion
Paragon Finance Limited's quarterly results demonstrate a robust performance with significant year-over-year growth in revenue and profitability. The company's ability to reverse its previous quarter's losses and show strong growth in various income streams indicates a positive outlook. However, investors should note the decline in interest income and monitor how the company manages its expenses and asset quality in the coming quarters.
Historical Stock Returns for Paragon Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.93% | -12.19% | -6.17% | -2.85% | -22.10% | +266.49% |
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