Smartlink Holdings' NBFC Registration Cancelled; Q1 Results Show Profit
Smartlink Holdings announced the cancellation of its NBFC registration by RBI and released Q1 financial results. The company voluntarily surrendered its NBFC registration due to not meeting RBI's Principal Business Criteria. In Q1, Smartlink reported standalone revenue growth of 68.29% and turned profitable with Rs. 11.94 lakhs PAT. Consolidated results showed a slight revenue decrease but improved profitability with Rs. 217.51 lakhs PAT.
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Smartlink Holdings , a prominent player in the networking and IT products sector, has announced two significant developments: the cancellation of its Non-Banking Financial Company (NBFC) registration and the release of its financial results for the first quarter.
NBFC Registration Cancellation
The Reserve Bank of India (RBI) has confirmed the cancellation of Smartlink Holdings' Certificate of Registration as an NBFC. This cancellation follows the company's voluntary surrender of its NBFC registration, which was originally issued on May 2, 2018. The decision to surrender the registration was made because Smartlink Holdings was not meeting the Principal Business Criteria stipulated by the RBI, as its financial income was less than 50 percent of the total income.
The RBI's confirmation of cancellation, dated August 12, comes under Section 45-IA of the Reserve Bank of India Act, 1934. Smartlink Holdings had initially informed about the surrender in February, demonstrating a proactive approach to regulatory compliance.
Q1 Financial Performance
Alongside this regulatory update, Smartlink Holdings has released its unaudited financial results for the quarter ended June 30. The company has shown a positive performance in both standalone and consolidated figures.
Standalone Results:
| Particulars (Rs. in Lakhs) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from operations | 1,877.52 | 1,115.65 | 68.29% |
| Total Income | 2,230.80 | 1,420.76 | 56.94% |
| Profit Before Tax | 17.87 | (52.90) | Turned Positive |
| Profit After Tax | 11.94 | (71.48) | Turned Positive |
Smartlink Holdings has shown a significant improvement in its standalone performance, with revenue from operations increasing by 68.29% year-over-year. The company has turned profitable, reporting a profit after tax of Rs. 11.94 lakhs compared to a loss in the same quarter last year.
Consolidated Results:
| Particulars (Rs. in Lakhs) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from operations | 3,702.33 | 4,007.53 | -7.62% |
| Total Income | 4,033.02 | 4,283.08 | -5.84% |
| Profit Before Tax | 285.92 | (17.62) | Turned Positive |
| Profit After Tax | 217.51 | (44.42) | Turned Positive |
On a consolidated basis, while there was a slight decrease in revenue, Smartlink Holdings has significantly improved its profitability. The company reported a profit after tax of Rs. 217.51 lakhs, compared to a loss in the same quarter of the previous fiscal year.
Management Commentary
K.R. Naik, Executive Chairman of Smartlink Holdings Limited, stated, "The cancellation of our NBFC registration aligns with our strategic focus on our core business of networking and IT products. Our financial results for Q1 demonstrate our ability to drive profitability despite challenging market conditions."
The company's board of directors approved these financial results at their meeting held on August 12. Smartlink Holdings continues to operate primarily in the Networking/IT Products segment, as noted in their financial statements.
Investors and stakeholders can access detailed financial results on the company's website and the websites of BSE Limited and the National Stock Exchange of India Limited.
Historical Stock Returns for Smartlink Holdings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.38% | +1.09% | +1.83% | +22.40% | -39.36% | +111.84% |
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