Transwarranty Finance Reports Mixed Q1 Results, Approves NCD Issuance
Transwarranty Finance Limited (TFL) reported mixed Q1 results with standalone profit but consolidated loss. Standalone total income decreased to Rs 332.17 lakhs from Rs 1,484.34 lakhs year-over-year, with profit after tax at Rs 57.33 lakhs. Consolidated results showed a loss of Rs 85.68 lakhs. The Board approved issuing NCDs worth up to Rs 129.5 crore, reappointed the Secretarial Auditor, and approved exploring external commercial borrowings.
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Transwarranty Finance Limited (TFL) has reported mixed financial results for the first quarter, along with several strategic decisions approved by its Board of Directors.
Financial Performance
On a standalone basis, TFL reported a total income of Rs 332.17 lakhs, marking a significant decrease from Rs 1,484.34 lakhs in the same quarter last year. Despite the revenue decline, the company managed to post a profit after tax of Rs 57.33 lakhs, though substantially lower than the Rs 1,259.66 lakhs recorded in the previous year's quarter.
The consolidated results paint a different picture, with the company reporting a loss after tax of Rs 85.68 lakhs, compared to a loss of Rs 38.58 lakhs in the prior year quarter.
Key Financial Metrics
| Particulars (Rs. in Lakhs) | Q1 (Standalone) | Q1 (Previous Year Standalone) | Q1 (Consolidated) | Q1 (Previous Year Consolidated) |
|---|---|---|---|---|
| Total Income | 332.17 | 1,484.34 | 412.41 | 424.02 |
| Profit/(Loss) After Tax | 57.33 | 1,259.66 | (85.68) | (38.58) |
Board Approvals and Strategic Decisions
The Board of Directors, in their meeting held on July 31, made several key decisions:
Secretarial Auditor Reappointment: The Board approved the reappointment of M/s. Yogesh Sharma & Co. as the Secretarial Auditor for a period of five years, from 2025-26 to 2029-30, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Non-Convertible Debentures (NCDs) Issuance: TFL received approval to issue unlisted NCDs worth up to Rs 129.5 crore through private placement. The issuance includes both secured and unsecured NCDs with varying tenures and interest rates:
- Secured NCDs: 3-year tenure with 11.25% p.a. interest rate
- Unsecured NCDs: 5-year tenure with 11.50% p.a. interest rate
- Special Category NCDs: 5 years and 367 days tenure with 12.00% p.a. interest rate
External Commercial Borrowings: The Board approved raising funds through external commercial borrowings, subject to shareholder consent at the upcoming AGM.
Financial Results Analysis
The standalone financial results show:
- Revenue from operations decreased to Rs 328.97 lakhs from Rs 1,483.74 lakhs in the same quarter last year.
- Other income slightly increased to Rs 3.20 lakhs from Rs 0.60 lakhs year-over-year.
- Total expenses increased to Rs 274.84 lakhs from Rs 224.68 lakhs in the same quarter last year.
The consolidated financial results indicate:
- Revenue from operations decreased to Rs 395.27 lakhs from Rs 402.09 lakhs in the same quarter last year.
- Total expenses increased to Rs 496.57 lakhs from Rs 462.60 lakhs year-over-year.
Conclusion
While Transwarranty Finance Limited faces challenges in its financial performance, particularly on a consolidated basis, the company is taking strategic steps to strengthen its position. The approval for NCD issuance and exploration of external commercial borrowings suggest that TFL is actively seeking to diversify its funding sources and potentially improve its financial structure in the coming quarters.
Historical Stock Returns for Transwarranty Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | -2.86% | -6.67% | +12.39% | -54.61% | +414.84% |
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