Jhaveri Credits

Jhaveri Credits & Capital Ltd Management Discussions

NSEBSE

₹215.95

(2.25%)

Oct 3, 2025|12:00:00 AM

Jhaveri Credits & Capital Ltd Share Price Management Discussions

THE BUSINESS

The Companys performance for the year ended March 31, 2025, and its outlook for the current year remain positive. Despite global uncertainties arising from economic crises and geopolitical tensions, the Indian economy has shown resilience, supported by stable governance and favorable policy measures. International rating agencies continue to maintain a progressive outlook for India, with consistent improvement across key indicators. Stock market indices, a key barometer of investor confidence, have shown steady growth since 2022, reflecting strong fundamentals and optimism in the domestic market.

FINANCIAL HIGHLIGHTS

The Audited Financial Statements of the Company as on March 31, 2025, are prepared in accordance with the relevant applicable Ind AS and Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") and the provisions of the Companies Act, 2013 ("Act").

The summarized financial highlight is depicted below:

(Rs. in Lakhs)

FINANCIAL RESULTS AND APPROPRIATIONS	2024-25	2023-24
Income
Income from Operations	2331.10	2619.62
Other Income	1.02	22.11
Total Income	2332.12	2641.73
Expenses
Purchases of stock - in-trade and investment	2118.47	3098.94
Change in inventories of stock in trade	(186.01)	(776.42)
Finance Costs	2.17	2.96
Fees and Commission Expenses	8.13	3.70
Employee Benefits Expenses	17.47	9.01
Depreciation, amortization and impairment	59.18	13.26
Other expenses	37.15	31.18
Total Expenses	2056.56	2382.63
Profit/(Loss) before Exceptional Items & Tax Expenses	275.56	259.10
Exceptional Items	0.00	0.00
Profit /(loss) before tax	275.56	259.10
Tax Expense
Current Tax	85.01	98.79
Deferred Tax	(43.06)	(1.18)
Adjustment of tax relating to earlier periods	(7.33)	0.46
Profit/(Loss) for the period	240.94	161.03
Other comprehensive income	0.00	0.00
Total Other Comprehensive Income	0.00	0.00
Total Comprehensive Income for the period	240.94	161.03
Paid up equity share capital (Face Value Rs. 10 per share)	898.59	898.59
Earnings Per Equity Share (Basic) (in Rs.)	2.68	2.42
Earnings Per Equity Share (Diluted) (in Rs.)	2.54	2.42

RESULTS OF OPERATIONS AND STATE OF COMPANYS AFFAIRS

During FY 2024-25, Revenue from Operations stood at 2,331.10 lakhs compared to 2,619.62 lakhs in FY 2023-24. While revenue witnessed a decline, the Company registered an improvement in profitability, with Profit After Tax rising to 240.94 lakhs as against 161.03 lakhs in the previous year, marking a growth of 49.6%. This reflects strong operational efficiency and prudent financial management.

FINANCIAL PERFORMANCE AND OPERATIONAL EFFICIENCY

The Company continues to adopt disciplined financial practices, avoiding speculative deployment of surplus funds. Both long-term and short-term planning strategies have safeguarded investments and ensured stability. Prudent monitoring by the management, coupled with timely decision-making and effective cost control, has contributed to profitability. Optimized operational costs further strengthen the Companys capacity for sustained growth.

KEY DEVELOPMENTS DURING THE YEAR

Scheme of Amalgamation of U R Energy (India) Private Limited with Jhaveri Credits and Capital Limited

The Jhaveri Credits and Capital Limited has received observation letter with ‘no adverse observations from BSE Limited on May 12, 2025. The Company has thereafter made an application with the Honble NCLT on June 4, 2025, and pursuant to the NCLT Order dated June 19, 2025, Meetings of the Equity Shareholders and Unsecured Creditors of both the Companies and the Secured Creditor of the Transferor Company were convened on August 2, 2025, wherein the Scheme was duly approved in all the meetings. The Applicant Companies have accordingly submitted the Chairmans Report with the Honble NCLT and the matter is currently pending final sanction of the Scheme by the Honble NCLT.

The Scheme remains subject to statutory and regulatory approvals inter alia including approvals from the National Company Law Tribunal and the respective shareholders and creditors of the Companies involved in the Scheme.

OPPORTUNITIES, THREATS AND OUTLOOK

Global political tensions and risks of conflict pose uncertainties. However, the Indian economy is relatively insulated due to strong domestic demand and a favorable consumption-driven growth cycle. International rating agencies continue to project India as one of the fastest-growing economies, supported by an election-driven domestic push and shifting global trade dynamics. This positions the Company to benefit from emerging opportunities while being mindful of global headwinds.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has in place a robust internal control framework, developed over time and reviewed periodically by management to ensure adequacy, effectiveness, and compliance with applicable laws and policies.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company is committed to fostering an inclusive and diverse workplace that ensures equal opportunity and non-discrimination. Employee engagement policies are designed to promote motivation, efficiency, and retention. Efforts remain focused on creating a work culture that encourages innovation, teamwork, and continuous improvement. As on March 31, 2025, total 4 employees.

RISK AND CONCERNS

The Companys business model remains conservative and secure, with minimal exposure to speculative risks. A disciplined approach towards fund management and operational efficiency provides protection against adverse market movements.

Details of significant changes in key financial ratios and return on Networth

The details of changes in key financial ratios and return on net worth are provided in the notes to financial statements forming part of the Annual Report.

Below are the details of significant changes in key financial ratios and return of Networth of the Company.

Sr. No.	Ratio Name	F.Y. 2024-25	F.Y. 2023-24	% change	Explanation
1	Trade Receivables Turnover Ratio	8.67	33.78	-74.33	The Trade Receivables Turnover Ratio decreased from 33.78 to 8.67, reflecting extended credit to customers aimed at supporting sales growth and strengthening business relationships
2	Interest Coverage Ratio	NA	NA	NA	NA
3	Current Ratio	57.53	62.15	-7.43	The Current Ratio, though marginally reduced from 62.15 to 57.53, continues to reflect a very strong liquidity position of the Company.
4	Debt Equity Ratio	0	0.01	0	No Debt in the books for the current financial year
5	Operating Profit Margin (%)	16.95%	10.83%	56.46%	Revenue From Operation decreased but due to efficient management Operating Profit Margin increased
6	Net Profit Margin (%)	10%	6%	66.67	Revenue From Operation decreased but due to efficient management Net Profit Margin increased
7	Return on New Worth	2.75%	1.89%	45.52	Return on Net Worth has been increased for the current financial year

CAUTIONARY STATEMENT

Statement in the management discussion and analysis describing the companys activities, projections, estimates, and expectation may be a Mary forecasting and visionary. Within the meaning of applicable laws, rules and regulations prevailing at present. Actual results, outcomes may differ, materially from those expectations due to economic condition in the country, government regulations tax laws, and /or any other statutes and other incidental factors.

Jhaveri Credits & Capital Ltd Management Discussions

Jhaveri Credits & Capital Ltd Share Price Management Discussions

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES