Pilani Investment Reports Mixed Q2 Results with Revenue Growth but Profit Decline
Pilani Investment & Industries Corporation Limited reported a 5.4% increase in Q2 revenue to Rs 12,947.49 lakhs, driven by a 24.2% rise in dividend income. However, net profit declined by 42.4% to Rs 4,471.47 lakhs due to higher expenses and finance costs. Total expenses surged by 180% to Rs 6,017.27 lakhs. The company's consolidated total assets grew to Rs 20,77,978.80 lakhs, with a debt-to-equity ratio of 0.13 times, maintaining strong credit ratings.
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Pilani Investment & Industries Corporation Limited, a prominent player in the investment and financing sector, has reported a mixed set of financial results for the second quarter. The company saw a significant increase in revenue but experienced a decline in net profit compared to the same period last year.
Revenue Surge
For the quarter ended September 30, Pilani Investment reported a total revenue from operations of Rs 12,947.49 lakhs, marking a substantial increase from Rs 12,282.66 lakhs in the corresponding quarter of the previous year. This 5.4% year-on-year growth was primarily driven by a notable rise in dividend income, which jumped to Rs 7,604.45 lakhs from Rs 6,121.27 lakhs in the same quarter of the previous year.
Profit Decline
Despite the revenue growth, the company's consolidated net profit for the quarter decreased to Rs 4,471.47 lakhs, down from Rs 7,769.74 lakhs in the same quarter last year, representing a 42.4% decline. This reduction in profit can be attributed to several factors, including increased finance costs and a loss from its associate company.
Key Financial Highlights
| Particulars (Rs. in Lakhs) | Q2 Current | Q2 Previous | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | 12,947.49 | 12,282.66 | 5.4% |
| Interest Income | 5,271.20 | 6,083.21 | -13.3% |
| Dividend Income | 7,604.45 | 6,121.27 | 24.2% |
| Total Expenses | 6,017.27 | 2,149.16 | 180.0% |
| Net Profit | 4,471.47 | 7,769.74 | -42.4% |
| EPS (Basic & Diluted) | 40.38 | 70.17 | -42.5% |
Expense Analysis
The company's total expenses for the current quarter stood at Rs 6,017.27 lakhs, a significant increase from Rs 2,149.16 lakhs in the same quarter of the previous year. This surge in expenses was largely due to:
- Higher finance costs of Rs 3,886.51 lakhs, up from Rs 1,949.55 lakhs in the previous year.
- A net loss of Rs 1,615.11 lakhs on derecognition of financial instruments under amortized cost category.
Balance Sheet Strength
As of September 30, Pilani Investment's consolidated total assets stood at Rs 20,77,978.80 lakhs, showing growth from Rs 19,31,729.90 lakhs as of March 31. The company's net worth increased to Rs 16,99,228.89 lakhs, up from Rs 15,98,008.67 lakhs at the end of the previous fiscal year.
Debt Position
The company's debt-to-equity ratio stood at 0.13 times as of September 30, indicating a conservative leverage position. Pilani Investment maintains strong credit ratings of CARE A1+ and CRISIL A1+ for its short-term instruments, reflecting its robust financial health.
Conclusion
Pilani Investment & Industries Corporation Limited's quarterly results present a mixed picture. While the company has shown strong revenue growth, particularly in dividend income, the decline in net profit highlights the challenges faced during the quarter. The increased expenses, especially in finance costs, have impacted the bottom line. However, the company's strong balance sheet and conservative debt position provide a solid foundation for future growth and stability in the dynamic investment and financing sector.
Historical Stock Returns for Pilani Investment & Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.24% | -2.92% | -0.95% | +0.08% | -6.69% | +187.14% |
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