Latest news with #financialgrowth
Entrepreneur
8 hours ago
- Business
- Entrepreneur
Zerodha Capital Reports INR 12.5 Cr Profit in FY25
Operating with a lean team, Zerodha Capital leverages the scale and infrastructure of Zerodha's core broking business, which has 8.1 million active clients on the National Stock Exchange—accounting for nearly 16 per cent of the market You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Zerodha Capital, the lending arm of brokerage major Zerodha, posted a net profit of INR 12.5 crore in the financial year ended March 2025, up from INR 7.2 crore the previous year, according to a report by The Economic Times. The profit surge comes as the company doubled its income year-on-year to INR 36 crore, driven largely by a sharp expansion in its loan book and operational leverage from its parent firm. Credit rating agency ICRA attributed the improved financial performance to a 3.2x increase in Zerodha Capital's loan portfolio, which touched INR 381 crore in the first nine months of FY25. The company lends against shares and mutual funds held by retail investors, offering up to INR 1 crore in loans with a lending value capped at 45 per cent of the securities pledged. Operating with a lean team, Zerodha Capital leverages the scale and infrastructure of Zerodha's core broking business, which has 8.1 million active clients on the National Stock Exchange—accounting for nearly 16 per cent of the market. The lending process is largely digital, allowing efficient disbursements and minimal overheads. ICRA maintained its credit rating for Zerodha Capital at AA- (Stable)/A1+, reaffirming confidence in the company's risk controls, despite noting its current small size and dependence on a limited group of lenders. The agency also assigned the same rating to the firm's new INR 100 crore short-term borrowing program. Zerodha Capital's net worth stood at INR 170 crore as of December 2024, with a gearing ratio of 1.4x—indicating moderate leverage. To fuel further growth, the promoter group has committed an additional INR 125 crore through compulsorily convertible preference shares. Importantly, the company has reported zero non-performing assets (NPAs) since its inception in 2021, underlining its conservative lending model. However, its future trajectory remains tied to broader market sentiment and evolving regulations. With increasing regulatory scrutiny over retail derivatives trading—one of Zerodha's core revenue drivers—Zerodha Capital's growth path could be tested. Zerodha Broking Ltd, the flagship business, posted a net profit of INR 5,496 crore in FY24 and delivered an impressive 56 per cent return on net worth. With these fundamentals in place, Zerodha Capital appears poised to scale its lending footprint cautiously but steadily within India's growing retail investing ecosystem.
Yahoo
11 hours ago
- Business
- Yahoo
POSaBIT Systems Corp (POSAF) Q1 2025 Earnings Call Highlights: Record Margins and Strong Growth ...
Adjusted Gross Margin Percentage: Increased from 64% in Q4 2024 to 65% in Q1 2025, an all-time high for POSaBIT. Adjusted Gross Profit: Grew by 9.4% year-over-year from Q1 2024 to Q1 2025. Adjusted EBITDA: Increased by 93.5% year-over-year from Q1 2024 to Q1 2025. New Locations Onboarded: Over 50 new locations in Q1 2025. Cash Flow: Positive cash flow in Q1 2025 despite a slight reduction in available cash due to final legal liability payment and salary increases. Warning! GuruFocus has detected 5 Warning Signs with POSAF. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. POSaBIT Systems Corp (POSAF) onboarded over 50 new locations in Q1, indicating strong growth in their point-of-sale business. The company's new e-commerce platform has exceeded forecasts and is growing rapidly since its beta launch. Adjusted gross margin percentage increased to an all-time high of 65% in Q1, up from 64% in Q4 of the previous year. Year-over-year, adjusted gross profit grew by 9.4% and adjusted EBITDA grew by 93.5%, showcasing significant financial improvement. POSaBIT Systems Corp (POSAF) was cash flow positive in Q1 and expects future quarters to continue this trend. Top line revenue was down slightly quarter-over-quarter due to migration between payment processors. Available cash decreased slightly in Q1 due to a final payment on a legal liability and salary increases. The company did not provide formal guidance for future quarters, which may create uncertainty for investors. The earnings call was brief, potentially leaving some stakeholders with unanswered questions. The timing of the earnings call at 4:30 PM Eastern Time on a Friday may have been inconvenient for some participants. Q: Can you provide an overview of POSaBIT's performance in Q1 2025? A: Ryan Hamlin, CEO, stated that Q1 2025 was consistent with the previous four quarters, with adjusted gross margin dollars and percentage remaining stable. The company focused on resource efficiency and maximizing gross profit, even when revenue was slightly down. They onboarded over 50 new locations and saw significant growth in their e-commerce platform. Q: What were the key financial highlights for Q1 2025? A: Ryan Hamlin noted that top-line revenue was slightly down due to a migration between payment processors aimed at improving gross margin and reducing risk. Adjusted gross margin percentage increased to 65%, an all-time high for POSaBIT. Year-over-year, adjusted gross profit grew by 9.4%, and adjusted EBITDA increased by 93.5%. Q: How did cash flow and financial stability fare in Q1 2025? A: The company experienced a slight reduction in available cash due to a final legal liability payment, small salary increases, and paying down aged payables. However, POSaBIT was cash flow positive for the quarter and expects future quarters to continue this trend. Q: What are the expectations for Q2 2025? A: Ryan Hamlin expressed optimism for Q2, anticipating improvements in adjusted gross margin dollars and adjusted EBITDA. While no formal guidance was provided, the company remains positive about its future prospects. Q: Were there any questions from participants during the call? A: There were no questions from participants during the call, and the session concluded without further inquiries. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Business
- Yahoo
Truist Increased the Price Target for e.l.f. Beauty, Inc. (ELF)
Truist Securities reiterated its Buy rating on e.l.f. Beauty, Inc. (NYSE:ELF) shares, raising its price objective from $75 to $125. A close up of the lip and eye products from the company on a model in a fashion and beauty shoot. The revision comes after the company's improved financial outlook and solid Q4 earnings performance. After revising its FY26 projections, Truist now forecasts $1.575 billion in sales and $332 million in EBITDA, up from the earlier projections of $1.466 billion and $327 million. Furthermore, the firm's confidence in e.l.f. Beauty, Inc. (NYSE:ELF)'s sustained development trajectory was reflected in the raised FY27 expectations. After Q4 earnings above market projections, the latest estimates indicate an upward revision in long-term expectations. Recently, e.l.f. Beauty, Inc. (NYSE:ELF) strengthened its portfolio by paying $1 billion to purchase Rhode, a celebrity beauty brand. The company has generated strong sentiment due to its industry-leading gross margins of 71.24%, $6.30 billion market capitalization, and 28.28% revenue growth over the last 12 months. Targets have also been raised by other firms, such as TD Cowen, Jefferies, Morgan Stanley, and Piper Sandler, with values ranging from $105 to $130. Analysts view e.l.f. Beauty, Inc. (NYSE:ELF)'s tactical moves and fundamentals as drivers for further rise, notwithstanding the macro uncertainty of the near future. While we acknowledge the potential of ELF to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELF and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None.
Yahoo
11 hours ago
- Business
- Yahoo
POSaBIT Systems Corp (POSAF) Q1 2025 Earnings Call Highlights: Record Margins and Strong Growth ...
Adjusted Gross Margin Percentage: Increased from 64% in Q4 2024 to 65% in Q1 2025, an all-time high for POSaBIT. Adjusted Gross Profit: Grew by 9.4% year-over-year from Q1 2024 to Q1 2025. Adjusted EBITDA: Increased by 93.5% year-over-year from Q1 2024 to Q1 2025. New Locations Onboarded: Over 50 new locations in Q1 2025. Cash Flow: Positive cash flow in Q1 2025 despite a slight reduction in available cash due to final legal liability payment and salary increases. Warning! GuruFocus has detected 5 Warning Signs with POSAF. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. POSaBIT Systems Corp (POSAF) onboarded over 50 new locations in Q1, indicating strong growth in their point-of-sale business. The company's new e-commerce platform has exceeded forecasts and is growing rapidly since its beta launch. Adjusted gross margin percentage increased to an all-time high of 65% in Q1, up from 64% in Q4 of the previous year. Year-over-year, adjusted gross profit grew by 9.4% and adjusted EBITDA grew by 93.5%, showcasing significant financial improvement. POSaBIT Systems Corp (POSAF) was cash flow positive in Q1 and expects future quarters to continue this trend. Top line revenue was down slightly quarter-over-quarter due to migration between payment processors. Available cash decreased slightly in Q1 due to a final payment on a legal liability and salary increases. The company did not provide formal guidance for future quarters, which may create uncertainty for investors. The earnings call was brief, potentially leaving some stakeholders with unanswered questions. The timing of the earnings call at 4:30 PM Eastern Time on a Friday may have been inconvenient for some participants. Q: Can you provide an overview of POSaBIT's performance in Q1 2025? A: Ryan Hamlin, CEO, stated that Q1 2025 was consistent with the previous four quarters, with adjusted gross margin dollars and percentage remaining stable. The company focused on resource efficiency and maximizing gross profit, even when revenue was slightly down. They onboarded over 50 new locations and saw significant growth in their e-commerce platform. Q: What were the key financial highlights for Q1 2025? A: Ryan Hamlin noted that top-line revenue was slightly down due to a migration between payment processors aimed at improving gross margin and reducing risk. Adjusted gross margin percentage increased to 65%, an all-time high for POSaBIT. Year-over-year, adjusted gross profit grew by 9.4%, and adjusted EBITDA increased by 93.5%. Q: How did cash flow and financial stability fare in Q1 2025? A: The company experienced a slight reduction in available cash due to a final legal liability payment, small salary increases, and paying down aged payables. However, POSaBIT was cash flow positive for the quarter and expects future quarters to continue this trend. Q: What are the expectations for Q2 2025? A: Ryan Hamlin expressed optimism for Q2, anticipating improvements in adjusted gross margin dollars and adjusted EBITDA. While no formal guidance was provided, the company remains positive about its future prospects. Q: Were there any questions from participants during the call? A: There were no questions from participants during the call, and the session concluded without further inquiries. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
a day ago
- Business
- Bloomberg
South African Stocks Rally to Record With a Boost From China
South Africa's benchmark stock index is heading for its best month in almost a year, with a helping hand from China's most valuable company. The FTSE/JSE Africa All Share Index is up more than 7% in dollar terms in May, on track for its biggest monthly gain since June last year and its best May performance since 2013. It has outperformed emerging-market peers as well as the S&P 500 and the Stoxx Europe 600.
