New Delhi, Feb 28 Shares of real estate company Signature Global India Limited on Friday witnessed a sharp decline by 4.14 per cent to close at Rs 1,042 after posting weak third quarter (Q3 FY25) financial results.
The company’s shares have been on a downward trend, dropping 13.64 per cent in the last month, 30.34 per cent over six months, and 22.1 per cent in the past year.
The real estate developer reported a significant rise in total expenses, which increased to Rs 835.89 crore in Q3, up 6.54 per cent from Rs 784.60 crore in Q2.
Compared to the same quarter last year (Q3 FY24), expenses have surged 179 per cent from Rs 299.70 crore.
The company attributed the increase to higher costs associated with project execution and completion, as stated in its stock exchange filing.
Adding to investor concerns, Signature Global's total liabilities also saw a steep rise, reaching Rs 11,525.72 crore in Q3, compared to Rs 9,852 crore in Q2 and Rs 7,181 crore a year ago.
This marks a 16.99 per cent jump from Q2 to Q3 and a 60.50 per cent rise year-on-year (YoY), raising questions about the company’s financial stability.
However, despite these challenges, the company reported strong revenue growth, with its total income jumping to Rs 830 crore in Q3, up from Rs 280 crore in the same period last year.
This multifold increase was driven by higher project completions and execution. Additionally, the company’s profit after tax (PAT) surged to Rs 28.99 crore, compared to just Rs 2 crore in Q3 FY24.
Signature Global also reported an improvement in its adjusted EBITDA margin, which rose to 12 per cent from 10 per cent a year ago.
The company’s net debt was reduced to Rs 740 crore, down from Rs 1,160 crore at the end of FY24.
"The sustained improvement in our financial metrics, including strengthened collections and significant debt reduction, underscores our commitment to maintaining operational excellence while pursuing growth," Chairman and Whole-time Director Pradeep Kumar Aggarwal said.
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