Kwality Credit's Q4 Profit Returns to Black Despite Revenue Decline
The financial services firm posted a small quarterly profit, but annual revenue fell sharply from the previous year.
Kwality Credit & Leasing reported a profit of ₹0.01 crore for Q4 FY23, a positive swing from losses in the prior quarter and year. However, quarterly revenue declined 21.4% year-on-year.
Kwality Credit & Leasing ended its fiscal year with a small quarterly profit, marking a positive shift from losses earlier in the year. However, this came alongside a significant year-on-year drop in revenue, highlighting ongoing challenges for the financial services firm.
The company's revenue for the quarter ended March 2023 was flat sequentially at ₹0.11 crore, but down 21.4% from ₹0.14 crore in the same quarter last year. Profit after tax for Q4 FY23 was ₹0.01 crore, a notable improvement from a loss of ₹0.08 crore in Q4 FY22 and a loss of ₹0.03 crore in the previous quarter (Q3 FY23). This resulted in a net profit margin of 9.1% for the latest quarter.
A look at the last five quarters shows a volatile earnings path:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ4 FY23 | PreviousQ3 FY23 | Same quarter LYQ4 FY22 |
|---|---|---|---|
| Revenue (₹ Cr) | 0.11YoY -21% | 0.11 | 0.14 |
| Profit (₹ Cr) | 0.01YoY +113% | -0.03 | -0.08 |
| Net Profit Margin | 9.1% | -27.3% | — |
On a full-year basis, the company reported a net loss of ₹0.14 crore on revenue of ₹0.48 crore for FY22. The trailing twelve-month (TTM) figures also reflect strain, with a marginal net loss of ₹0.01 crore on TTM revenue of ₹0.46 crore, translating to a negative TTM net profit margin of -2.2%.
The return to a slim quarterly profit is a step forward, but sustaining it against a declining revenue base will be the key test for Kwality Credit in the coming fiscal year.
Live Chart
· KWALITY CREDIT
(BSE)
ISIN: INE577C01015
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.