Sulabh Engineers & Services Limited, a Non-Banking Financial Company (NBFC), has reported a significant decline in its standalone net profit for the quarter ended September 30. The company's financial performance shows a mixed picture with decreased profits but diversified revenue streams.

Financial Highlights

• Net Profit: Rs 63.63 crore, down 29% from Rs 89.48 crore in the same quarter last year
• Total Revenue: Rs 111.20 crore, decreased from Rs 127.13 crore year-over-year
• Earnings Per Share (EPS): Rs 0.06, compared to Rs 0.09 in the same quarter last year

Revenue Breakdown

The company's revenue for the quarter came from various sources:

Half-Year Performance

For the half-year period:

• Net Profit: Rs 123.71 crore, down from Rs 128.87 crore in the previous year
• Total Revenue: Rs 197.05 crore, up from Rs 191.15 crore in the previous year

Operational Insights

The company's Board of Directors approved the unaudited financial results and acknowledged the limited review report from auditors M/s Ranjit Jain & Co. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.

Market Position

As an NBFC, Sulabh Engineers & Services Limited operates in the competitive financial services sector. The company's diverse revenue streams, including investment sales and interest income, indicate a balanced approach to financial operations.

Consolidated Results

On a consolidated basis, the company reported:

• Net Profit: Rs 54.12 crore
• Total Revenue: Rs 116.64 crore

The consolidated results include the performance of its subsidiary, Venkatswamy Mining & Estates Private Limited.

Conclusion

While Sulabh Engineers & Services Limited faced a challenging quarter with reduced profits, its diversified revenue streams and stable half-yearly performance suggest resilience in its business model. The company's ability to navigate the current financial landscape and work towards improving its profitability will be crucial in the coming periods.

Sulabh Engineers & Services Limited held its 42nd Annual General Meeting (AGM) on September 20, where shareholders approved several key resolutions that will shape the company's governance and operations in the coming years.

New Independent Director Appointed

The shareholders approved the appointment of Mr. Vivek Awasthi (DIN: 06961442) as an Independent Director of the company. Mr. Awasthi, a qualified Chartered Accountant, brings valuable experience in finance and accounting to the board. His previous experience as an Independent Director on a listed entity's board is expected to contribute significantly to Sulabh Engineers' corporate governance practices.

Secretarial Auditor Appointed

In a move to enhance its compliance framework, the company appointed CS Gopesh Sahu as the Secretarial Auditor for a five-year term. Mr. Sahu, a Practicing Company Secretary with CP number 7800 and PRU Certificate No. 1515/2021, will serve from the financial year 2025-26 to 2029-30. This appointment is crucial for ensuring adherence to regulatory requirements and maintaining transparency in corporate affairs.

Related Party Transactions Approved

Shareholders gave their nod to transactions with the company's subsidiary, setting an aggregate limit of ₹2.00 crores for the financial year 2025-26. This approval comes with stringent oversight measures, including quarterly reviews by the Audit Committee and regular disclosures as per regulatory norms. The move is aimed at enhancing operational flexibility while maintaining robust governance standards.

Other Key Resolutions

The AGM also saw the approval of other important resolutions:

1. The audited financial statements (standalone and consolidated) for the year ended March 31, along with the reports of the Board of Directors and Auditors, were adopted.

2. Mrs. Seema Mittal (DIN: 06948908), who retired by rotation, was reappointed as a Director of the company.

Voting Results

All resolutions were passed with an overwhelming majority. The e-voting results showed that each resolution received over 99.99% votes in favor, with minimal opposition.

The AGM, conducted through video conferencing, saw participation from both promoter group members and public shareholders, reflecting the company's commitment to inclusive decision-making and shareholder engagement.

These decisions are expected to strengthen Sulabh Engineers' corporate structure and pave the way for improved governance and operational efficiency in the coming years.