Overview of S P Capital Financing’s Q3 Results for 2025
On February 12, 2025, S P Capital Financing announced its financial results for the third quarter (Q3) of the fiscal year 2025. The report highlighted a notable increase in revenue year-over-year, even as the company faced significant challenges with profitability.
Key Financial Highlights
- Revenue Growth
- Total Revenue: The company’s revenue in Q3 reached ₹1.31 crore, reflecting a remarkable 54.12% growth compared to the same period last year.
- Profit Decline
- Net Income: Despite the rise in revenue, S P Capital Financing’s profit decreased sharply by 38.46% year-over-year, resulting in a total profit of only ₹0.08 crore.
- Quarter-over-Quarter Comparisons
- When comparing Q3 to the previous quarter (Q2 FY25), revenue dropped by 15.48%, and net profit saw a drastic decline of 85.96%.
Analysis of Operational Costs
Rising Expenses
One of the major factors contributing to the decline in profitability was the significant rise in operating costs, particularly in selling, general, and administrative (SG&A) expenses.
- SG&A Expenses: These costs increased by 16.67% from the previous quarter and 75% year-over-year, indicating a growing strain on the company’s budget.
- Total Operating Expenses: The total operating expenses rose to ₹1.22 crore, up 48.78% from Q2 and 64.86% year-over-year.
- Operating Income: Operating income saw a steep decline, dropping 87.5% quarter-over-quarter and 18.18% year-over-year, which indicates significant operational challenges.
Earnings Per Share (EPS)
The earnings per share for Q3 was reported at ₹0.13, which is down 38.1% compared to the same period last year. This drop in EPS highlights the financial pressures that S P Capital Financing is currently facing.
Stock Performance
In the past week, S P Capital Financing’s stock has seen a return of 1.49%. Over the last six months, it has increased by 7.25%, but the year-to-date performance is concerning with a 14.82% decline. Investors are closely monitoring the company’s ability to recover from these setbacks.
Market Capitalization and Stock Volatility
As of the latest reports, S P Capital Financing has a market capitalization of ₹33.07 crore. The stock has experienced considerable volatility, with a 52-week high of ₹78 and a low of ₹22.88. This fluctuation in the stock price suggests uncertainty in the market regarding the company’s future performance.
Summary of Q3 Financials
Here is a comprehensive summary of S P Capital Financing’s financial performance for Q3 FY25 against the previous quarter (Q2 FY25) and the same quarter from the previous fiscal year (Q3 FY24):
| Financial Metric | Q3 FY25 | Q2 FY25 | Q-o-Q Growth | Q3 FY24 | Y-o-Y Growth |
|---|---|---|---|---|---|
| Total Revenue | ₹1.31 | ₹1.55 | -15.48% | ₹0.85 | +54.12% |
| SG&A Expenses | ₹0.14 | ₹0.12 | +16.67% | ₹0.08 | +75% |
| Total Operating Expense | ₹1.22 | ₹0.82 | +48.78% | ₹0.74 | +64.86% |
| Operating Income | ₹0.09 | ₹0.72 | -87.5% | ₹0.11 | -18.18% |
| Net Income Before Taxes | ₹0.10 | ₹0.72 | -86.11% | ₹0.23 | -56.52% |
| Net Income | ₹0.08 | ₹0.57 | -85.96% | ₹0.13 | -38.46% |
| Diluted Normalized EPS | ₹0.13 | ₹0.95 | -86.32% | ₹0.21 | -38.1% |
Conclusion
Despite achieving significant growth in revenue compared to last year, S P Capital Financing is grappling with high operating costs and declining profits. The sharp drop in net income and EPS reflects the need for careful analysis and potential restructuring to navigate the identified challenges. Investors will be watching closely to see how the company addresses these issues and whether it can recover and sustain growth moving forward.
