Sarthak Industries Reports 350% Surge in Q1 Net Profit, Appoints Key Auditors
Sarthak Industries Limited's Q1 net profit increased by 350% to Rs 113.63 lacs, despite a revenue decrease. The company's trading segment performed strongly, contributing Rs 5,759.74 lacs to total revenue. The Board approved appointments of secretarial, internal, and cost auditors. Additionally, five promoter group entities requested reclassification to the 'Public' category, potentially affecting the company's shareholding structure.
*this image is generated using AI for illustrative purposes only.
Sarthak Industries Limited has reported a substantial increase in net profit for the quarter ended June 30, alongside several key corporate appointments and governance updates.
Financial Performance
The company's net profit soared to Rs 113.63 lacs in Q1, marking a significant 350% increase from Rs 25.26 lacs in the same quarter of the previous year. This impressive growth comes despite a decrease in total revenue, which stood at Rs 5,907.87 lacs compared to Rs 10,328.25 lacs in the previous quarter.
Sarthak Industries' performance metrics for Q1 are as follows:
| Metric | Q1 | Q4 | Q1 (Previous Year) |
|---|---|---|---|
| Net Profit (Rs lacs) | 113.63 | 68.69 | 25.26 |
| Total Revenue (Rs lacs) | 5,907.87 | 10,328.25 | 844.33 |
| Basic EPS (Rs) | 1.22 | 0.74 | 0.27 |
The company's basic earnings per share (EPS) for the quarter stood at Rs 1.22, compared to Rs 0.27 in the corresponding quarter of the previous year.
Segment Performance
Sarthak Industries operates in two main business segments: Cylinders and Trading. The segment-wise revenue breakdown for Q1 is as follows:
- Cylinders Business: Rs 138.04 lacs
- Trading Business: Rs 5,759.74 lacs
The trading business segment showed particularly strong results, contributing significantly to the company's overall performance.
Corporate Governance Updates
The Board of Directors has approved several key appointments to enhance the company's corporate governance structure:
- M/s. Ajit Jain & Co., Practicing Company Secretaries, appointed as Secretarial Auditor for a five-year term.
- M/s. S K Malani & Co., Chartered Accountants, re-appointed as Internal Auditor.
- M/s. A. Goyal and Co., Cost Accountants, re-appointed as Cost Auditor.
These appointments are subject to shareholder approval at the upcoming Annual General Meeting.
Promoter Reclassification
The Board has also considered requests for reclassification of certain promoter group entities. Five entities, collectively holding a 0.06% stake in the company, have requested reclassification from the 'Promoter and Promoter Group' category to the 'Public' category. The entities seeking reclassification are:
- Abhadevi Shahra (4,667 shares, 0.05%)
- Shweta Shahra (0 shares)
- Sandhya Khandelwal (667 shares, 0.01%)
- Amrita Sachdev (133 shares, 0.00%)
- Mahakosh Amusement Pvt. Ltd. (0 shares)
This reclassification, if approved, could potentially impact the company's shareholding structure and public float.
Sarthak Industries Limited continues to demonstrate strong financial performance and commitment to robust corporate governance practices. The significant increase in net profit, despite lower revenues, suggests improved operational efficiency. The company's strategic focus on its trading business segment appears to be yielding positive results, contributing to its overall growth trajectory.
Historical Stock Returns for Sarthak Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.97% | -9.84% | -13.64% | -6.97% | +18.05% | +400.32% |
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