Result Analysis of Viji Finance Ltd for Q3-FY24

Earnings Snapshot

Methodology: Red=Decreased, Green= Increased, The N/A entries represent cases where the percentage change or margin difference exceeds 100% or 1000 basis points (bps).

Analysis

Revenue Performance

1. Q3-FY24 revenue stood at ₹51.2 Lakhs, reflecting a robust 22.8% Q-o-Q growth and an impressive 48.9% Y-o-Y increase.
2. 9M-FY24 revenue at ₹137.6 Lakhs represents a decline of 13.0% Y-o-Y.
The strong quarterly growth indicates improving operational efficiency and expanding business opportunities.
However, the Y-o-Y decline in 9M-FY24 raises concerns about the company's overall revenue trajectory.

Operating Profit and Margin

1. Q3-FY24 operating profit of ₹3.5 Lakhs reflects a significant Q-o-Q decline of 48.4%, with the corresponding margin dropping from 16.3% to 6.9%.
2. The Y-o-Y comparison is marked as N/A due to negative Q3-FY23 operating profit (-₹83.2 Lakhs).
3. 9M-FY24 operating profit margin is 37.5%, representing a substantial improvement from the negative margin in the previous year.
The decline in Q-o-Q operating profit and margin raises concerns about cost management.
The significant improvement in 9M-FY24 margin suggests a positive trend, potentially driven by cost-cutting measures or improved operational efficiency.

Net Profit and Margin

1. Q3-FY24 net profit of ₹2.7 Lakhs indicates an N/A percentage change due to negative Q3-FY23 net profit (-₹2.5 Lakhs).
2. 9M-FY24 net profit margin is 10.9%, reflecting a recovery from the 33.4% margin in the same period last year.
3. The positive Q3-FY24 net profit suggests a turnaround from the negative performance in the previous year.
The recovery in the 9M-FY24 net profit margin is a positive sign, indicating better profitability over the extended period.

Earnings Per Share (EPS)

1. Q3-FY24 Basic and Diluted EPS are minimal at ₹0.003, showing an N/A percentage change due to negative Q3-FY23 EPS.
2. 9M-FY24 EPS stands at ₹0.06, indicating a substantial improvement from the previous year.
The low Q3-FY24 EPS reflects the challenging conditions in the previous year, while the positive trend in 9M-FY24 suggests a recovery in earnings.

Overall Analysis

VIJI FINANCE LIMITED Q3-FY24 results show a mixed performance, with strong revenue growth but a decline in operating profit.
The recovery in net profit and margins over 9M-FY24 indicates positive momentum.
Investors should closely monitor the company's cost management strategies and overall financial health to assess its sustainability.