Hedge Finance reports standalone net loss of Rs 1.85 crore in the March 2025 quarter

By Admin

26 Jun, 2025

Hedge Finance has reported a disappointing financial performance for the quarter ended March 2025, recording a standalone net loss of ₹1.85 crore. This marks a significant reversal from the net profit of ₹1.59 crore reported in the corresponding quarter of the previous fiscal year, March 2024.

Quarterly Highlights

In Q4 FY25, the company’s total sales stood at ₹11.54 crore, showing a marginal decline of 1.45% compared to ₹11.71 crore in Q4 FY24. The Operating Profit Margin (OPM) also witnessed a drastic contraction, slipping to 32.93% from 66.10% in the same quarter last year. Key profitability indicators such as Profit Before Depreciation and Tax (PBDT) and Profit Before Tax (PBT) turned negative as well. PBDT dropped to ₹-1.61 crore from ₹2.19 crore, while PBT dipped to ₹-1.81 crore from ₹2.05 crore year-over-year.

Annual Performance

Despite a positive growth in annual sales, the profitability for the full financial year also saw a sharp decline. Hedge Finance reported a net profit of ₹2.47 crore for the year ended March 2025, down by 54.76% from ₹5.46 crore in the previous year. However, total sales for FY25 rose by 4.28% to ₹45.28 crore from ₹43.42 crore in FY24. The annual PBDT also declined by 46% from ₹7.69 crore to ₹4.13 crore, and PBT fell by 51% from ₹7.17 crore to ₹3.48 crore.

Summary of Financial Performance

Conclusion

The March 2025 quarter results indicate a challenging financial period for Hedge Finance, with declining margins and profitability. Although annual sales saw a modest increase, the overall financial health was impacted due to rising costs and shrinking profit margins. The company may need to implement strong cost controls and operational efficiencies to navigate through this downturn and regain investor confidence in the upcoming quarters.