Team India Guaranty Ltd Reports Sharp Revenue Decline and Swings to Loss in Q1
Team India Guaranty Limited (TIGL) experienced a significant financial downturn in Q1. Total income fell 78.5% to Rs. 6.84 crore from Rs. 31.85 crore year-over-year. The company swung from a net profit of Rs. 28.70 crore to a net loss of Rs. 3.99 crore. EPS declined by 84.6% to Rs. 0.04. Despite year-over-year declines, TIGL showed sequential improvement with revenue increasing from Rs. 1.54 crore to Rs. 6.84 crore and reduced net losses compared to the previous quarter.
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Team India Guaranty Limited (TIGL) has reported a significant downturn in its financial performance for the first quarter. The company's latest financial results reveal a substantial decline in revenue and a shift from profit to loss compared to the same period last year.
Revenue Plummets
TIGL reported a total income of Rs. 6.84 crore for Q1, marking a steep 78.5% decrease from Rs. 31.85 crore in the same quarter of the previous fiscal year. This dramatic decline in revenue highlights the challenges faced by the company in maintaining its income streams during the quarter.
Profitability Takes a Hit
The company's bottom line saw a significant reversal, swinging from a net profit of Rs. 28.70 crore to a net loss of Rs. 3.99 crore in the current quarter. This shift into loss-making territory underscores the financial pressures TIGL is currently facing.
Earnings Per Share Declines
Reflecting the overall financial performance, TIGL's earnings per share (EPS) declined sharply by 84.6%, dropping to Rs. 0.04 from Rs. 0.26 in the same quarter of the previous fiscal year.
Sequential Improvement
Despite the year-over-year decline, TIGL showed some signs of recovery on a sequential basis. The company's revenue improved from Rs. 1.54 crore in the previous quarter to Rs. 6.84 crore in the current quarter, indicating quarter-on-quarter growth. Additionally, net losses reduced from Rs. 23.29 crore to Rs. 3.99 crore, suggesting some stabilization in the company's financial position.
Historical Performance Context
Looking at the company's historical performance, TIGL had shown positive trends in the recent past. The annual income statement data for the previous fiscal year revealed:
| Metric | Value | Change from Previous Year |
|---|---|---|
| Annual revenue | Rs. 3.53 crore | 6.97% increase |
| Net profit | Rs. 2.35 crore | 30.56% increase |
| Operating profit margin | 74.79% | Up from 72.56% |
However, the latest quarterly results indicate a significant deviation from this growth trajectory, highlighting the volatile nature of the company's business environment.
Conclusion
Team India Guaranty Limited's Q1 results paint a picture of a company facing substantial headwinds. The sharp decline in revenue and the swing to a net loss position are concerning developments for investors and stakeholders. While the sequential improvement from the previous quarter offers a glimmer of hope, the company will need to address the factors behind the year-over-year decline to regain its footing in the market. Stakeholders will be keenly watching TIGL's performance in the coming quarters for signs of a sustained recovery.
Historical Stock Returns for Team India Guaranty
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.73% | -0.99% | +0.81% | +56.87% | +78.38% | +775.42% |
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