Suvidhaa Infoserve has reported a mixed set of financial results for the first quarter. The company saw significant revenue growth but experienced a sharp decline in profitability.

Revenue Growth

The total income from operations for Q1 stood at Rs. 1157.39 lakhs, marking a substantial increase of 38.6% compared to Rs. 835.01 lakhs in the same quarter of the previous year. This growth indicates a strong expansion in the company's business activities.

Profit Decline

Despite the impressive revenue growth, Suvidhaa Infoserve's net profit for the quarter decreased significantly:

Operating Performance

The operating profit before depreciation, tax, and exceptional items also saw a decline:

Earnings Per Share

The company's earnings per share (EPS) reflected the profit decline:

Sequential Performance

On a quarter-on-quarter basis, Suvidhaa Infoserve showed some signs of improvement:

• Revenue growth: 8.8% compared to the previous quarter
• Profitability: Returned to profit after posting a loss of Rs. 165.87 lakhs in the preceding quarter

Capital Structure

The paid-up equity share capital of the company remained unchanged at Rs. 209.81 lakhs.

Conclusion

While Suvidhaa Infoserve is successfully growing its top line, it faces challenges in maintaining profitability. The ability to convert increased revenue into improved bottom-line results will be crucial for the company's financial health and market perception going forward.

The company's board of directors approved these unaudited financial results at their meeting held on August 13, as per the regulatory filing made to the stock exchanges.

Suvidhaa Infoserve Limited announced the resignation of its statutory auditors, M/s. GS Mathur & Co., Chartered Accountants, effective August 13, 2025. The resignation comes in the wake of recent changes in financial reporting and disclosure requirements, which have led to increased audit procedures and a broader scope of work.

Reasons for Resignation

According to the resignation letter submitted by GS Mathur & Co., the primary reason for their departure was the additional efforts and time required due to recent amendments in financial reporting and disclosure requirements. The auditors had proposed an increase in the existing audit fee structure to accommodate these changes. However, it appears that an agreement on the revised fees could not be reached with the company.

Auditor's Statement

In their resignation letter, GS Mathur & Co. emphasized that they have no disputes or concerns regarding the availability or accuracy of information provided by the management for audit purposes. They confirmed receiving all necessary information and explanations required for conducting their audit procedures.

Company's Response

Suvidhaa Infoserve stated that there is no material reason for the resignation other than the fee dispute. The company also confirmed that the auditors did not raise any concerns about the company's management or financial reporting practices.

Transition and Next Steps

The resignation will take effect after the submission of the Limited Review Report for the quarter ended June 30, 2025. The Audit Committee and Board of Directors of Suvidhaa Infoserve will consider appointing new statutory auditors to fill the casual vacancy created by this resignation.

Regulatory Compliance

In compliance with SEBI regulations, Suvidhaa Infoserve has made the necessary disclosures to the stock exchanges regarding the auditor's resignation. The company has also provided detailed information as required by SEBI Circular No. CIR/CFD/CMD1/114/2019 dated October 18, 2019.

Impact on Financial Reporting

GS Mathur & Co. had completed the statutory audit for the financial year ended March 31, 2025, and issued their audit reports on the standalone and consolidated financial statements dated May 29, 2025. The auditors have agreed to provide any necessary assistance, clarification, and information that may be required by the company during this transition period.

As Suvidhaa Infoserve moves forward, the focus will be on the appointment of new auditors and the smooth transition of the auditing process.