SVAM Software Reports Mixed Q1 Results: Revenue Up 11%, Profit Down 85%
Svam Software Limited reported mixed Q1 results with an 11% increase in operational revenue to ₹6.49 lakhs, but a 34% decrease in total income to ₹9.99 lakhs due to reduced other income. Profit before tax fell sharply by 85% to ₹1.04 lakhs. The company managed to reduce employee benefit expenses by 80% and eliminate finance costs. The basic and diluted EPS for the quarter stood at ₹0.01.
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Svam Software Limited, a company operating in the trading of shares and securities, has reported mixed financial results for the first quarter. The company saw growth in its core operations but experienced a significant decline in overall profitability.
Revenue Growth Amid Declining Total Income
Svam Software's revenue from operations increased by 11% year-over-year, reaching ₹6.49 lakhs compared to ₹5.85 lakhs in the same quarter of the previous year. However, the company's total income saw a substantial decrease, dropping to ₹9.99 lakhs from ₹15.07 lakhs. This decline was primarily attributed to a significant reduction in other income, which fell from ₹9.23 lakhs to ₹3.50 lakhs.
Sharp Decline in Profitability
The company's profit before tax (PBT) experienced a sharp decline, falling to ₹1.04 lakhs from ₹7.10 lakhs in the corresponding quarter of the previous year, representing an 85% decrease. This substantial drop in profitability can be largely attributed to the reduction in other income.
Cost Management Efforts
Despite the challenges, Svam Software demonstrated efforts in cost management:
- Employee benefit expenses were reduced to ₹0.48 lakhs from ₹2.40 lakhs.
- Finance costs were completely eliminated.
These cost-cutting measures helped to partially offset the impact of reduced income on the company's bottom line.
Key Financial Metrics
| Metric | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹6.49 lakhs | ₹5.85 lakhs | +11% |
| Other Income | ₹3.50 lakhs | ₹9.23 lakhs | -62% |
| Total Income | ₹9.99 lakhs | ₹15.07 lakhs | -34% |
| Profit Before Tax | ₹1.04 lakhs | ₹7.10 lakhs | -85% |
| Employee Benefit Expenses | ₹0.48 lakhs | ₹2.40 lakhs | -80% |
Earnings Per Share
The basic and diluted earnings per share (EPS) for the quarter stood at ₹0.01, reflecting the impact of reduced profitability on shareholder returns.
Management Commentary
The company's financial results were reviewed by the Audit Committee and approved by the Board of Directors. The management has not provided specific commentary on the results or future outlook in the available information.
Svam Software Limited continues to operate within a single primary business segment, focusing on the trading of shares and securities. The company's ability to grow its core operations revenue in a challenging environment demonstrates some resilience, but the significant decline in other income and overall profitability may be areas of concern for investors and stakeholders moving forward.
Historical Stock Returns for Svam Software
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.95% | -3.80% | -16.49% | +11.82% | +131.56% | +823.53% |
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