💰 Financial Performance

Revenue Growth by Segment

Total Revenue from Operations was INR 2,331.10 lakhs in FY 2024-25, representing a decline of 11.01% compared to INR 2,619.62 lakhs in FY 2023-24. Segment-specific growth was not disclosed.

Profitability Margins

Operating Profit Margin improved significantly from 10.83% to 16.95% (a 56.46% relative increase) due to efficient management. Net Profit Margin increased from 6% to 10% (a 66.67% relative increase) YoY.

EBITDA Margin

The Operating Profit Margin of 16.95% reflects core profitability, which grew by 56.46% relative to the previous year, driven by optimized operational costs despite a revenue decline.

Capital Expenditure

Depreciation, amortization, and impairment expenses rose to INR 59.18 lakhs in FY 2024-25 from INR 13.26 lakhs in FY 2023-24, a 346.3% increase, indicating significant asset adjustments or additions.

Credit Rating & Borrowing

The Company reported a Debt-Equity Ratio of 0 for FY 2024-25, down from 0.01, indicating no outstanding debt. Finance costs were minimal at INR 2.17 lakhs, down 26.69% YoY.

⚙️ Operational Drivers

Raw Materials

Purchases of stock-in-trade and investments represent the primary cost of operations, totaling INR 2,118.47 lakhs, which accounts for 90.88% of total revenue.

Capacity Expansion

The Company is pursuing a Scheme of Amalgamation with U R Energy (India) Private Limited, which received shareholder approval on August 2, 2025, to expand its operational scale and business base.

Raw Material Costs

Costs for stock-in-trade and investments decreased by 31.64% YoY to INR 2,118.47 lakhs from INR 3,098.94 lakhs, reflecting a shift in procurement and investment volume.

Manufacturing Efficiency

The Company operates with a lean workforce of 4 employees as of March 31, 2025, focusing on operational efficiency to drive a 49.63% growth in Profit After Tax.

📈 Strategic Growth

Growth Strategy

The primary growth strategy is the amalgamation with U R Energy (India) Private Limited. The Company received 'no adverse observations' from BSE on May 12, 2025, and is currently awaiting final sanction from the NCLT following shareholder approval in August 2025.

Products & Services

The Company provides financial credit services, investment products, and capital market trading services.

Brand Portfolio

Jhaveri Credits and Capital Limited.

Market Expansion

The Company aims to leverage the positive outlook of the Indian economy and steady growth in stock market indices since 2022 to expand its domestic financial services footprint.

Strategic Alliances

Amalgamation with U R Energy (India) Private Limited is the key strategic move currently in progress.

🌍 External Factors

Industry Trends

The industry is characterized by steady growth in stock market indices since 2022 and stable governance, positioning the Company to benefit from domestic investor optimism.

Competitive Landscape

The Company operates in a competitive financial services market, focusing on conservative and secure business models to differentiate from speculative players.

Competitive Moat

The Company maintains a moat through cost leadership and operational efficiency, evidenced by the improvement in Net Profit Margin to 10% and a disciplined, conservative fund management approach.

Macro Economic Sensitivity

The Company is highly sensitive to the Indian economy's resilience and domestic market fundamentals, which have shown consistent improvement across key indicators.

Geopolitical Risks

Global uncertainties and geopolitical tensions are noted as potential risks that could impact the Indian economy and, consequently, the Company's investment outcomes.

⚖️ Regulatory & Governance

Industry Regulations

The Company complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013, regarding financial reporting and corporate governance.

Taxation Policy Impact

Current tax expense for FY 2024-25 was INR 85.01 lakhs, representing approximately 30.8% of Profit Before Tax (INR 275.56 lakhs).

Legal Contingencies

The Scheme of Amalgamation with U R Energy (India) Private Limited is currently pending final sanction by the Hon’ble NCLT following an application made on June 4, 2025.

⚠️ Risk Analysis

Key Uncertainties

The Trade Receivables' Turnover Ratio decreased by 74.33% (from 33.78 to 8.67), indicating extended credit to customers which could increase the risk of bad debts if not managed effectively.

Third Party Dependencies

Dependency on MCS Share Transfer Agent Limited for Registrar and Share Transfer services.

Credit & Counterparty Risk

Receivables quality is a primary concern as the Company extended credit terms to support sales growth, leading to a significant drop in the turnover ratio.