Ridhi Synthetics Reports 68% Decline in Q1 Profit Despite Revenue Growth
Ridhi Synthetics Limited reported a 15% increase in revenue to ₹12.48 lakh for Q1 FY24. However, net profit declined by 68% to ₹8.55 lakh compared to the same quarter last year. Total income decreased to ₹26.33 lakh from ₹46.79 lakh. The company's EPS dropped to ₹0.71 from ₹2.24. Despite profit decline, total comprehensive income was ₹640.10 lakh due to other comprehensive income items. The company operates in a single business segment and has no outstanding loan defaults.
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Ridhi Synthetics Limited, a Mumbai-based company, has released its unaudited financial results for the quarter ended June 30, revealing a mixed performance with revenue growth but a significant decline in profit.
Revenue Growth Amidst Profit Decline
The company reported a 15% increase in revenue from operations, which rose to ₹12.48 lakh from ₹10.85 lakh in the previous quarter. However, this growth was overshadowed by a substantial 68% year-over-year decline in net profit, which fell to ₹8.55 lakh from ₹26.91 lakh in the same quarter last year.
Financial Highlights
- Total income decreased to ₹26.33 lakh from ₹46.79 lakh year-over-year.
- Other income saw a significant drop to ₹13.85 lakh from ₹35.94 lakh in the previous year.
- Employee benefit expenses increased to ₹9.94 lakh from ₹8.74 lakh.
- Other expenses rose to ₹5.77 lakh from ₹1.80 lakh.
Comprehensive Income and EPS
Despite the decline in net profit, Ridhi Synthetics reported a total comprehensive income of ₹640.10 lakh, primarily due to other comprehensive income items. The earnings per share (EPS) stood at ₹0.71, down from ₹2.24 in the corresponding quarter last year.
Management Statement
The company's management, in its filing, confirmed that there are no outstanding defaults on loans or debt securities.
Financial Position
| Particulars (₹ in Lakh) | Q1 (Unaudited) | Q1 (Unaudited) | % Change |
|---|---|---|---|
| Revenue from Operations | 12.48 | 10.85 | +15.02% |
| Total Income | 26.33 | 46.79 | -43.73% |
| Net Profit | 8.55 | 26.91 | -68.23% |
| EPS (₹) | 0.71 | 2.24 | -68.30% |
The board meeting to approve these results was held on August 13, commencing at 3:00 PM and concluding at 3:45 PM. The company's statutory auditor, SVP & Associates, has issued an audit report with an unmodified opinion on the financial results.
Ridhi Synthetics Limited continues to operate in a single business segment, and the company's management has stated that the financial results are prepared in accordance with the Indian Accounting Standards Rules 2015 (as amended) prescribed under section 133 of the Companies Act, 2013.
Historical Stock Returns for Ridhi Synthetics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | +15.13% |
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