RR Financial Consultants Limited, a financial services company, has released its unaudited financial results for the third quarter and nine months ended December 31, 2021, showing a mixed performance across different time frames and bases of accounting.

Consolidated Performance

The company reported a significant improvement in its consolidated net profit after taxes and minority interest for the nine-month period. RR Financial Consultants posted a profit of Rs 46.92 lakhs, marking a substantial increase from Rs 26.48 lakhs recorded in the corresponding period of the previous year.

However, the third quarter results paint a different picture. The company experienced a net loss of Rs 4.09 lakhs for Q3, contrasting with a profit of Rs 2.83 lakhs in the same quarter of the previous year.

On the revenue front, RR Financial Consultants demonstrated growth. The consolidated total revenue for the nine-month period reached Rs 1,067.14 lakhs, up from Rs 903.62 lakhs in the previous year, indicating an 18.1% increase.

Standalone Performance

On a standalone basis, the company's performance showed a decline. RR Financial Consultants earned a net profit of Rs 0.60 lakhs for the nine-month period, down from Rs 8.53 lakhs in the previous year, representing a significant decrease of about 93%.

Capital Structure and Earnings Per Share

The company's paid-up equity share capital remains unchanged at Rs 1,106.94 lakhs, with shares having a face value of Rs 10 each.

For the nine-month period, the basic earnings per share (EPS) stood at:

• Consolidated basis: Rs 0.42
• Standalone basis: Rs 0.01

Financial Results Summary

The financial results reflect a complex picture for RR Financial Consultants Limited, with improved consolidated performance over the nine-month period but challenges in the most recent quarter. The company's ability to grow its consolidated revenue is a positive sign, although the standalone profit decline and the quarterly loss indicate areas that may require attention.

RR Financial Consultants (RRFCL) has announced that its material subsidiary, RR Investors Capital Services Private Limited (RRICS), is proposing a significant move to reward its shareholders. The company's board of directors has proposed a bonus share issue, subject to shareholder approval at an upcoming Extraordinary General Meeting.

Bonus Issue Details

The proposed bonus issue comes with the following key points:

• Ratio: 3:1 (three new equity shares for every one existing share)
• Face Value: Rs. 1.00 per share
• Total Value: Rs. 7,47,09,960.00
• Source: To be capitalized from Securities Premium Reserve and Free Reserves Account
• Record Date: August 2, 2025

Shareholding and Related Party Transaction

RRFCL, the parent company, holds a substantial 74.07% stake in RRICS, making this a related party transaction. The remaining shareholding is primarily held by Rajat Prasad (24.91%) and Priyanka Singh (0.0066%).

Company Background

RRICS operates in the financial services and investment advisory industry, offering a range of capital market solutions including:

• Equity and debt advisory
• Wealth management
• Distribution and marketing of financial products
• Stock and securities brokerage

Financial Performance

The company has shown remarkable growth in recent years:

This represents a significant increase from Rs. 1.04 crore in FY 2022-23 to Rs. 15.53 crore in FY 2024-25.

Objectives of the Bonus Issue

The bonus share issue aims to:

1. Capitalize on a portion of the company's reserves
2. Strengthen shareholder value
3. Improve the liquidity of the subsidiary's shares
4. Align with the group's strategy to reward shareholders

Regulatory Compliance

The proposed bonus issue is being disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the relevant disclosures required by SEBI Circular dated July 13, 2023.

Conclusion

The proposed bonus issue by RR Investors Capital Services Private Limited represents a significant move to reward shareholders and strengthen its capital structure. As a material subsidiary of a listed entity, this decision aligns with the group's overall strategy and reflects the company's strong financial position and growth trajectory in recent years.