SMC Global Securities Reports Strong Q3 FY25 Results, Declares 60% Interim Dividend

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New Delhi, January 29, 2025 – SMC Global Securities Limited (BSE: 543263 | NSE: SMCGLOBAL) has reported robust financial results for the third quarter of the fiscal year 2024-25, showcasing sustained revenue growth and strong profitability across its business segments. The company also announced a 60% interim dividend of ₹1.2 per share, reinforcing its commitment to shareholder returns.


Financial Highlights

Consolidated Q3 FY25 Performance

  • Total Revenue from Operations: ₹45,546.57 lakh.
  • Net Profit After Tax: ₹4,386.96 lakh.
  • Total Comprehensive Income: ₹4,566.87 lakh.
  • Earnings Per Share (EPS): ₹4.17.
  • Net Profit Margin: 9.63%.
Key Observations:

  • Interest income led revenue generation at ₹11,718.04 lakh, reflecting a stable lending business.
  • Fee and commission income stood at ₹26,531.67 lakh, highlighting strong brokerage and advisory services.
  • Proprietary trading gains reached ₹5,617.07 lakh, supporting revenue growth.
  • The finance cost increased to ₹5,097.52 lakh, reflecting higher borrowings.

Standalone Performance

Q3 FY25 Standalone Results

  • Total Revenue from Operations: ₹22,282.18 lakh.
  • Profit Before Tax (PBT): ₹2,022.02 lakh.
  • Net Profit After Tax (PAT): ₹1,551.89 lakh.
  • EPS: ₹1.48.
Year-to-Date (April–December 2024) Highlights:

  • Total Revenue: ₹72,526.19 lakh.
  • Net Profit: ₹9,664.94 lakh.
  • EPS: ₹9.23.

Segment Performance

Revenue by Business Segments:

  • Broking, Distribution & Trading: ₹24,437.04 lakh.
  • Insurance Broking Services: ₹14,822.56 lakh.
  • Financing Activities: ₹7,116.59 lakh.

Profitability by Segment:

  • Broking & Trading: ₹5,496.71 lakh.
  • Insurance Broking: ₹251.44 lakh.
  • Financing: ₹4,929.67 lakh.
The insurance broking segment saw growth, while broking & trading continued to be the primary revenue driver.


Key Developments & Strategic Announcements

Interim Dividend Declaration

  • ₹1.2 per share (60% of face value ₹2 per share).
  • Total payout: ₹1,256.40 lakh.
  • Record date: January 31, 2025.

Credit Ratings & Debt Profile

  • CRISIL reaffirmed an "A/Stable" outlook on the company's non-convertible debentures (NCDs).
  • ICRA maintained "A (Stable)" rating on long-term debt.
  • Debt-to-equity ratio: 1.41.

Debenture Compliance & Security Cover

  • All outstanding NCDs fully secured with a minimum 110% asset coverage.
  • Interest payments made on time, ensuring compliance with debenture covenants.

Market Outlook & Strategic Focus

Growth Drivers:

  • Strong demand in capital markets for broking and wealth management services.
  • Expansion of the insurance broking business, with growing client acquisitions.
  • Rising interest income from lending activities, strengthening financial performance.

Challenges & Risks:

  • Higher finance costs due to rising interest rates.
  • Market volatility impacting proprietary trading gains.

Stock Market Impact & Investor Sentiment

Given the company's robust earnings, strong dividend payout, and stable business growth, SMC Global Securities is expected to attract positive investor sentiment. Analysts anticipate continued momentum, especially with growth in retail participation in stock markets and higher fee-based income.


Final Takeaway

SMC Global Securities has demonstrated consistent revenue and profit growth, backed by strong business fundamentals and a disciplined financial approach. With a healthy balance sheet, stable credit ratings, and expanding business segments, the company is well-positioned for long-term value creation in India’s growing financial services sector.
 
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