💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of proprietary investments. Total operating income declined by 120.1% YoY, falling from INR 1,502.95 lakhs in FY23 to a loss of INR 302.48 lakhs in FY24. This was primarily due to net unrealized losses of INR 333.79 lakhs from adverse market price movements in equity investments.

Geographic Revenue Split

100% of revenue is generated from investment activities within India. The company's performance is tied to the Indian equity markets, specifically the Nifty50 and Sensex indices.

Profitability Margins

Net profit margin shifted from 80.5% in FY23 to a negative/not meaningful figure in FY24 due to a net loss of INR 542.24 lakhs. Operating profit (EBIT) margin also turned negative from 91.1% in FY23.

EBITDA Margin

EBITDA margin is not meaningful for FY24 as both the numerator and denominator are negative. Core profitability was severely impacted by a 94.2% increase in total expenses, which rose from INR 144.00 lakhs to INR 279.68 lakhs.

Capital Expenditure

Historical CapEx is not explicitly detailed in INR Cr; however, the company incurred significant costs related to a rights issue and increased employee headcount (workforce of 9 personnel) during FY24.

Credit Rating & Borrowing

The company has a 'NIL' credit rating as it did not have any debt instruments or fixed deposit programs during the year. Borrowing costs are currently 0% as the Debt-to-Equity ratio is 0.0x with no outstanding borrowings as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company is a Non-Banking Financial Company (NBFC) focused on proprietary investments.

Import Sources

Not applicable.

Key Suppliers

Not applicable.

Capacity Expansion

Not applicable for the current business model; however, the company has increased its borrowing limits to INR 50 Crores to potentially fund future growth opportunities.

Raw Material Costs

Not applicable. Operating costs are driven by employee benefit expenses and regulatory compliance.

Manufacturing Efficiency

Not applicable. The company monitors investment performance rather than manufacturing metrics.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

The company aims to achieve growth by leveraging the positive outlook for the NBFC sector in FY25-26, focusing on capital appreciation and dividends from equity investments. It has increased borrowing limits to INR 50 Crores to enable securitization, direct assignment, and creation of charges for fund mobilization. The strategy includes capitalizing on India's increased weightage in the MSCI Emerging Markets Index (18% as of Jan 2025).

Products & Services

Proprietary investment in stocks and securities, credit services as an Investment and Credit Company (ICC).

Brand Portfolio

Crescentis Capital Limited (formerly Som Datt Finance Corporation Limited).

New Products/Services

The company recently completed a rights issue to raise capital and is exploring growth opportunities that may necessitate further human resource expansion.

Market Expansion

The company is focused on the Indian financial services sector, specifically targeting opportunities in the Base Layer (NBFC-BL) category under RBI's scale-based regulations.

Market Share & Ranking

Not disclosed; classified as a Base Layer NBFC.

🌍 External Factors

Industry Trends

The NBFC sector is seeing tailwinds from digital infrastructure and fintech adoption. Credit demand is expected to improve in FY25-26 due to a supportive monetary environment and disciplined risk management across financial institutions.

Competitive Landscape

The sector faces intensifying competition and regulatory interventions which may exert short-term pressure on growth and profitability.

Competitive Moat

The company's moat is based on its regulatory status as an RBI-registered NBFC-ICC and its strategic focus on a diversified equity portfolio to navigate market fluctuations.

Macro Economic Sensitivity

Highly sensitive to India's political and economic environment, inflation (currently easing), and RBI monetary policy (repo rate at 6.5%).

Consumer Behavior

Not directly applicable; however, increased financial inclusion and wealth creation trends in India support the broader investment environment.

Geopolitical Risks

Global developments and foreign portfolio outflows are cited as headwinds that could lead to rupee depreciation and market volatility.

⚖️ Regulatory & Governance

Industry Regulations

Complies with 'Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023' and SEBI (LODR) Regulations, 2015.

Environmental Compliance

Not applicable for an NBFC-ICC.

Taxation Policy Impact

Not disclosed; however, the company follows Ind AS 109 for the fair valuation of financial instruments.

Legal Contingencies

The company notes that ongoing litigations could impact operations, though specific case values in INR are not disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Market/Systematic risk is the primary uncertainty, where economic downturns or geopolitical tensions could impact the entire stock portfolio regardless of individual company performance.

Geographic Concentration Risk

100% concentration in the Indian market, making it vulnerable to domestic political shifts and regional economic downturns.

Third Party Dependencies

High dependency on the performance and dividend distribution policies of investee companies.

Technology Obsolescence Risk

The company notes that fintech adoption is a sector-wide trend; failure to adapt to digital infrastructure acceleration could be a long-term risk.

Credit & Counterparty Risk

The company is a non-deposit taking NBFC; credit quality is currently managed through disciplined risk management, with a focus on maintaining a healthy balance sheet.