Synopsis
Signature Global India Limited's shares fell by 4.14% to Rs 1,042 after announcing disappointing Q3 FY25 results. Total liabilities surged, raising financial stability concerns, despite strong revenue growth and improved profit margins.Key Takeaways
- Shares fell by 4.14% to Rs 1,042.
- Expenses jumped to Rs 835.89 crore.
- Total liabilities increased to Rs 11,525.72 crore.
- Revenue surged to Rs 830 crore.
- PAT rose to Rs 28.99 crore.
New Delhi, Feb 28 (NationPress) Shares of the real estate firm Signature Global India Limited experienced a sharp drop of 4.14 percent, closing at Rs 1,042 following disappointing financial results for the third quarter (Q3 FY25).
The company's stock has been on a downward trajectory, declining 13.64 percent in the past month, 30.34 percent over the last six months, and 22.1 percent over the past year.
During Q3, expenses rose significantly to Rs 835.89 crore, marking an increase of 6.54 percent from Rs 784.60 crore in Q2.
When compared to the same quarter last year (Q3 FY24), expenses surged 179 percent from Rs 299.70 crore.
The company cited the increase in expenses as a result of higher costs linked to project execution and completion, as detailed in their filing to the stock exchange.
Investor concerns were compounded by a significant rise in total liabilities, which reached Rs 11,525.72 crore in Q3, an increase from Rs 9,852 crore in Q2 and Rs 7,181 crore a year earlier.
This represents a 16.99 percent increase from Q2 to Q3 and a 60.50 percent year-on-year increase, raising questions about the company’s financial stability.
Nonetheless, the company reported robust revenue growth, with total income rising to Rs 830 crore in Q3, up from Rs 280 crore in the same quarter last year.
This remarkable growth was fueled by increased project completions and execution. Furthermore, the company’s profit after tax (PAT) soared to Rs 28.99 crore, compared to just Rs 2 crore in Q3 FY24.
Signature Global also noted an improvement in its adjusted EBITDA margin, climbing to 12 percent from 10 percent a year prior.
The company successfully reduced its net debt to Rs 740 crore, down from Rs 1,160 crore at the close of FY24.
Chairman and Whole-time Director Pradeep Kumar Aggarwal remarked, "The continued enhancement of our financial metrics, which includes improved collections and significant debt reduction, reflects our dedication to operational excellence while aiming for growth."
