Softrak Venture Investments Reports 555% Surge in Q1 Net Profit
Softrak Venture Investments, a Gujarat-based company, reported a 555% year-over-year increase in net profit for Q1, rising from Rs 0.40 lakh to Rs 2.62 lakh. Total revenue grew by 61.34% to Rs 12.52 lakh, entirely from other income, as revenue from operations dropped to nil. Despite a 24.93% increase in total expenses to Rs 9.02 lakh, the significant growth in other income boosted profitability. The company's financial results, approved on August 12, reveal a notable shift in its revenue composition.
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Softrak Venture Investments , a Gujarat-based company, has reported a significant increase in its net profit for the first quarter. The company's financial results, approved by the Board of Directors on August 12, reveal a notable shift in its revenue composition and profitability.
Financial Highlights
- Net Profit: Rs 2.62 lakh (Q1 current year) vs Rs 0.40 lakh (Q1 previous year), a 555% year-over-year increase
- Total Revenue: Rs 12.52 lakh (Q1 current year) vs Rs 7.76 lakh (Q1 previous year), a 61.34% year-over-year growth
- Revenue from Operations: Nil (Q1 current year) vs Rs 7.76 lakh (Q1 previous year)
- Other Income: Rs 12.52 lakh (Q1 current year) vs Nil (Q1 previous year)
- Total Expenses: Rs 9.02 lakh (Q1 current year) vs Rs 7.22 lakh (Q1 previous year), a 24.93% increase
Key Financial Metrics
| Particulars (in Rs. Lakh) | Q1 Current Year | Q1 Previous Year | % Change |
|---|---|---|---|
| Revenue from Operations | 0.00 | 7.76 | -100.00 |
| Other Income | 12.52 | 0.00 | N/A |
| Total Revenue | 12.52 | 7.76 | +61.34 |
| Total Expenses | 9.02 | 7.22 | +24.93 |
| Net Profit | 2.62 | 0.40 | +555.00 |
Analysis of Results
Softrak Venture Investments experienced a substantial transformation in its revenue structure during the first quarter. The company's revenue from operations dropped to zero, compared to Rs 7.76 lakh in the same quarter last year. However, this decline was more than offset by a significant increase in other income, which rose to Rs 12.52 lakh from nil in the previous year's quarter.
The company's total expenses increased by 24.93% to Rs 9.02 lakh, primarily due to higher employee benefits expense of Rs 3.00 lakh and other expenses of Rs 6.02 lakh. Despite the increase in expenses, the substantial growth in other income allowed Softrak Venture Investments to report a 555% year-over-year increase in net profit.
Other Details
- The company maintained its paid-up equity share capital at Rs 4,507.79 lakh.
- Basic and diluted earnings per share remained at Rs 0.00, unchanged from the previous year.
- The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on August 12.
- A limited review of the financial results was conducted by A.L. Thakkar & Co., Chartered Accountants.
Softrak Venture Investments' shift from operational revenue to other income sources marks a significant change in its business model. Investors and stakeholders will likely be keen to understand the nature of this other income and its sustainability in future quarters. The company's ability to maintain profitability despite the absence of revenue from operations will be a key area to watch in the coming periods.
