Crest Ventures H1FY27 Results (NSE: CREST)
Signal: Earnings declined
The read
The headline H1 trajectory remains weak: total income fell 33.68% to 4631.72 lakh and PAT fell 56.02% to 1095.82 lakh, with finance costs up 16.32%, employee costs up 14.27% and other expenses up 27.81%; however, Q2 standalone PAT recovered to 741.08 lakh from 354.74 lakh in Q1, helped by a 112.84 lakh impairment reversal and 782.63 lakh of dividend income in Q2.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹46.32 Cr | -33.68% | N/A |
| Net profit | ₹10.96 Cr | -56.02% | |
| EPS | ₹3.88 | -56.11% | |
| EBIT margin | 0% |
P&L walk
H1 standalone total income declined 33.68% and PAT declined 56.02% YoY; higher finance costs, employee costs, depreciation and other expenses outweighed the improvement in impairment, while Q2 PAT of 741.08 lakh was above Q1's 354.74 lakh.
Key positives
- Q2 standalone PAT recovered to ₹741.08 lakh from ₹354.74 lakh in Q1, a sequential increase of 108.89%.
- The company reported a net impairment reversal of ₹112.84 lakh in H1FY27 versus a ₹23.22 lakh reversal in the year-ago period.
- Capital adequacy remained high at 59.79% and debt-equity was stable at 0.17x.
- Operating cash flow was ₹6375.74 lakh in H1FY27, despite reported PAT of ₹1095.82 lakh.
Key concerns
- H1 total income declined 33.68% to ₹4631.72 lakh and PAT declined 56.02% to ₹1095.82 lakh.
- Finance costs increased 16.32% to ₹1081.90 lakh while total income declined 33.68%.
- Other expenses increased 27.81% to ₹1074.41 lakh and depreciation increased 57.04% to ₹237.16 lakh, contributing to operating pressure.
- The H1 earnings improvement includes a ₹112.84 lakh impairment reversal and Q2 dividend income of ₹782.63 lakh, reducing the visibility of recurring operating earnings.
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