Viji Finance Reports Widened Losses and Board Reshuffle in Q2

Viji Finance Limited , a financial services company, has reported its financial results for the quarter and half-year ended September 30, revealing a challenging period marked by increased losses and operational changes.

Financial Performance

For the quarter ended September 30, Viji Finance reported a net loss of ₹9.69 crore, a significant increase from the ₹33.00 lakh loss in the previous quarter. The half-year results paint a similar picture, with the company recording a net loss of ₹42.69 crore, compared to a loss of ₹30.66 crore in the corresponding period last year.

Despite the widened losses, the company's revenue from operations showed a marginal improvement. For Q2, revenue increased to ₹57.58 crore from ₹56.52 crore in the previous quarter.

Key Financial Metrics

Particulars (in ₹ crore)	Q2	Q1	H1	H1 PY
Revenue from Operations	57.58	56.52	114.10	114.27
Total Income	65.60	65.85	131.45	115.37
Total Expenses	75.69	99.23	174.92	157.25
Net Profit/(Loss)	(9.69)	(33.00)	(42.69)	(30.66)

Balance Sheet Highlights

As of September 30, Viji Finance's total assets stood at ₹3,444.14 crore. The company's loan portfolio, a crucial component of its business, amounted to ₹2,693.02 crore, showing a slight decrease from ₹2,705.60 crore reported on March 31.

Corporate Governance Changes

In a significant development, Mr. Aryaman Kothari has resigned from his position as Non-Executive Non-Independent Director of the company, effective November 3. Mr. Kothari cited other professional commitments as the reason for his departure.

Following this change, the Board of Directors has reconstituted its Finance Committee. Mr. Nitesh Gupta, a Whole Time Director, has been appointed as a member of this committee, joining Mr. Vijay Kothari, the Managing Director, who serves as the Chairperson.

Operational Insights

The company continues to operate in a single segment of finance services. The Board of Directors and the Audit Committee have reviewed and approved these financial results, which have also undergone a limited review by the statutory auditors.

Looking Ahead

While Viji Finance faces challenges in terms of profitability, the slight increase in operational revenue suggests potential for recovery. The company's ability to manage its loan portfolio and adapt to the changing financial landscape will be crucial in the coming quarters.

Investors and stakeholders will be closely watching how the recent board changes and operational strategies impact the company's performance in the future. The management's focus on strengthening the balance sheet and improving operational efficiency will be key factors in Viji Finance's efforts to return to profitability.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.77%	-0.69%	-18.47%	+27.56%	-3.69%	+474.00%

Viji Finance Limited , a financial services company, has reported a net loss of Rs 33.00 lacs for the quarter ended June 30, compared to a loss of Rs 10.31 lacs in the same quarter last year. The company's financial performance and corporate updates were disclosed in its recent board meeting held on August 5.

Financial Performance

The company's total income decreased to Rs 65.85 lacs from Rs 103.60 lacs in the previous quarter. Here's a breakdown of the key financial metrics:

Particulars (in Rs Lacs)	Q1	Q4	Q1 (Previous Year)
Total Income	65.85	103.60	53.46
Total Expenses	99.23	30.20	67.77
Net Profit/(Loss)	(33.00)	67.98	(10.31)
EPS (Basic & Diluted)	(0.02)	0.05	(0.01)

The company's interest income remained relatively stable at Rs 56.52 lacs. However, total expenses increased significantly to Rs 99.23 lacs from Rs 30.20 lacs in the previous quarter, primarily due to higher employee benefit expenses and other expenses.

Corporate Updates

Appointment of Secretarial Auditors

The board approved the appointment of Ramesh Chandra Bagdi & Associates, Practicing Company Secretaries, as Secretarial Auditors for a five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

Finance Committee Reconstitution

The company reconstituted its Finance Committee of Board of Directors, effective August 5, with Mr. Vijay Kothari as Chairperson, and Mr. Nitesh Gupta and Mr. Aryaman Kothari as members.

International Listing Plans

The board approved draft documents for listing equity shares of promoters and promoter group on SDAX Exchange Singapore, indicating potential plans for international expansion.

Management Commentary

Vijay Kothari, Chairman & Managing Director of Viji Finance Limited, stated, "While we faced challenges in the first quarter, we remain committed to improving our financial performance. The appointment of new secretarial auditors and the reconstitution of our Finance Committee are steps towards strengthening our corporate governance. Additionally, our plans for listing on the Singapore exchange reflect our ambition for international growth."

The company's unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors. They are subject to limited review by the statutory auditors of the company.

Viji Finance Limited continues to operate in the finance services segment, focusing on interest income as its primary revenue source. The company's management is taking steps to address the increased expenses and aims to return to profitability in the coming quarters.