Oswal Greentech , a prominent player in the real estate and investment sector, announced a significant change in its auditing structure alongside the release of its first-quarter financial results.

Auditor Resignation

The company disclosed that M/s Oswal Sunil & Company, its statutory auditors, have tendered their resignation effective August 7. The Board of Directors accepted the resignation during their meeting held on the same day. According to the company's statement, the auditors cited reasons for their departure in their resignation letter, though these specific reasons were not elaborated upon in the public announcement.

It's noteworthy that the resigning auditors did not raise any concerns regarding the company's management, nor did they cite any material reasons for their decision to step down. The Audit Committee and Board members acknowledged M/s Oswal Sunil & Company's contribution to the company's audit processes and standards of auditing.

Q1 Financial Highlights

Coinciding with this announcement, Oswal Greentech also released its unaudited financial results for the quarter ended June 30:

The company demonstrated robust growth in the first quarter, with total income rising by 26.23% year-over-year to ₹2,759.93 lakh. Profit after tax saw a significant increase of 42.57%, reaching ₹666.25 lakh compared to ₹467.31 lakh in the same quarter of the previous fiscal year.

Segment Performance

Oswal Greentech operates in two primary segments: Real Estate and Investment Activities. For Q1 FY2025-26:

• The Real Estate segment reported revenue of ₹1,248.48 lakh, up from ₹859.03 lakh in Q1 FY2024-25.
• Investment Activities generated revenue of ₹673.82 lakh, compared to ₹579.79 lakh in the same quarter last year.

Management Commentary

Aruna Oswal, Wholetime Director & Chairperson of Oswal Greentech Limited, signed off on the financial results and the announcement regarding the auditor's resignation. The company assured stakeholders that there were no concerns raised by the resigning auditors regarding the management or material reasons cited for the resignation.

Looking Ahead

As Oswal Greentech navigates this transition in its auditing partnership, the company's strong financial performance in Q1 FY2025-26 provides a solid foundation. The search for new statutory auditors and the continuation of financial reporting processes will likely be key priorities for the management in the coming weeks.

Oswal Greentech , a diversified company with interests in real estate and investment activities, has reported a significant increase in its net profit for the first quarter. The company's financial performance shows robust growth in both revenue and profitability.

Financial Highlights

• Net Profit: Oswal Greentech's net profit surged to ₹66.00 million in Q1, marking a substantial 40% year-over-year increase from ₹47.00 million in the same quarter last year.
• Revenue: The company's revenue grew to ₹202.00 million, up from ₹158.00 million in the corresponding period of the previous year, representing a growth of about 27.85%.

Segment Performance

According to the detailed financial results provided in the company's LODR filing:

Note: Segment results are before tax and interest.

Other Financial Metrics

• Total Income: The company's total income for Q1 stood at ₹2,759.93 million, which includes revenue from operations and other income.
• Expenses: Total expenses for the quarter were ₹2,008.04 million.
• Earnings Per Share (EPS): The basic and diluted EPS for the quarter was ₹0.26 (not annualized).

Management Commentary

Aruna Oswal, Wholetime Director & Chairperson of Oswal Greentech Limited, signed off on the financial results, which were approved by the Board of Directors in their meeting.

Outlook

While the company has shown strong growth in its Q1 results, it's important to note that there are ongoing disputes and arbitration proceedings related to inter-corporate deposits. The company is currently evaluating an arbitration award and consulting with legal advisors to determine future actions.

Oswal Greentech's performance in the real estate segment showed a loss, while its investment activities and unallocated segments contributed positively to the overall profitability. The company's ability to navigate challenges in the real estate sector while leveraging its investment portfolio will be crucial for sustained growth in the coming quarters.