Starteck Finance Reports 107% Surge in Q1 Net Profit, Boosted by Fair Value Gains

Starteck Finance Limited, a non-banking financial company, has reported a significant increase in its consolidated net profit for the quarter ended June 30. The company's performance was marked by substantial growth in both its core operations and investment portfolio.

Financial Highlights

• Consolidated net profit rose to ₹354.36 crore, up 107% from ₹170.82 crore in the same quarter last year.
• Total income increased to ₹1,022.49 crore from ₹727.57 crore, representing a 40.5% year-on-year growth.
• Interest income grew to ₹737.54 crore compared to ₹661.17 crore in the previous year's quarter.
• Earnings per share (EPS) improved to ₹3.58 from ₹1.72 in the corresponding quarter of the previous year.

Operational Performance

The company's core operations showed robust growth, with interest income forming a significant portion of the total revenue. The increase in interest income indicates a healthy expansion of Starteck Finance's loan portfolio.

Investment Gains

A notable aspect of Starteck Finance's performance this quarter was the substantial fair value gains on investments held through other comprehensive income, amounting to ₹1,491.76 crore. This contributed significantly to the company's total comprehensive income, which surged to ₹1,454.45 crore from ₹208.53 crore in the same quarter last year.

Financial Position

The company's balance sheet remains strong, with a paid-up equity share capital of ₹991.03 crore. The earnings per share (not annualized) stood at ₹3.58, compared to ₹1.72 in the same quarter of the previous year, reflecting the company's improved profitability.

Conclusion

Starteck Finance Limited has demonstrated a robust financial performance in the first quarter. The significant increase in net profit, coupled with substantial fair value gains on investments, positions the company favorably for continued growth. Investors and stakeholders will likely be watching closely to see if this strong performance can be sustained in the coming quarters.

Note: The financial results were approved by the Board of Directors at their meeting held on August 5, and have been subjected to a limited review by the company's statutory auditors.