NewsEarningsResponse Informatics Reports Mixed Q1 Results: Standalone Profit Amid Consolidated LossResponse Informatics Reports Mixed Q1 Results: Standalone Profit Amid Consolidated Loss
Response Informatics reported mixed Q1 financial results. Standalone revenue decreased by 20.70% to Rs 198.67 crore, with a net profit of Rs 6.44 crore. Consolidated revenue fell 36.40% to Rs 615.83 crore, resulting in a net loss of Rs 13.48 crore. The loss is attributed to investments in subsidiary Datalabs AI Private Limited. The board approved the continuation of Mrs. Bhuvaneswari Seetharaman as a Non-Executive Director beyond 75 years, subject to shareholder approval.
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Response Informatics has released its financial results for the first quarter, revealing a mixed performance with standalone profit and consolidated loss.
Standalone Performance
On a standalone basis, Response Informatics reported a revenue of Rs 198.67 crore for Q1, compared to Rs 250.52 crore in the same quarter last year, marking a decrease of 20.70%. Despite the revenue decline, the company managed to post a net profit of Rs 6.44 crore, down from Rs 9.50 crore in the corresponding quarter of the previous year.
The company's earnings per share (EPS) on a standalone basis stood at Rs 0.08 for the quarter.
Consolidated Results
The consolidated financial picture, however, presented challenges for Response Informatics. The company reported a consolidated revenue of Rs 615.83 crore, down from Rs 968.15 crore in Q1 of the previous year, representing a significant decline of 36.40%. The consolidated results showed a net loss of Rs 13.48 crore, in contrast to a profit of Rs 45.92 crore in the prior year quarter.
The consolidated earnings per share (EPS) was negative Rs 0.08 for the quarter.
Subsidiary Performance
The company attributed the losses in consolidated results primarily to its subsidiary, Datalabs AI Private Limited, which is currently in the product development phase. This phase requires substantial investment, impacting the overall group performance.
Board Approvals
In addition to the financial results, the Board of Directors approved the continuation of Mrs. Bhuvaneswari Seetharaman as a Non-Executive Director of the company beyond the age of 75 years, subject to shareholder approval.
Management Commentary
Subramaniyam Seetha Raman, Managing Director of Response Informatics, stated, "While our standalone performance remains profitable, we acknowledge the challenges reflected in our consolidated results. The losses are primarily due to our strategic investments in Datalabs AI Private Limited, which is in a critical product development phase. We believe these investments will position us strongly for future growth in the AI sector."
Financial Highlights
| Particulars (in Rs crore) | Q1 (Standalone) | Q1 PY (Standalone) | Q1 (Consolidated) | Q1 PY (Consolidated) |
|---|---|---|---|---|
| Revenue | 198.67 | 250.52 | 615.83 | 968.15 |
| Net Profit/(Loss) | 6.44 | 9.50 | (13.48) | 45.92 |
| EPS (in Rs) | 0.08 | 0.12 | (0.08) | 0.60 |
The company's board meeting commenced at 12:00 Noon and concluded at 02:15 P.M.
Response Informatics continues to operate in the "Staffing Services" segment, as per the requirements of Ind AS 108 "Operating Segments". The company's management remains focused on navigating the current challenges while investing in future growth opportunities.
Historical Stock Returns for Response Informatics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.86% | -7.31% | +2.00% | -33.77% | -63.57% | +183.33% |
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