Now Reading: Wakefit Q1 Profit Rises 19% to Rs 23.4 Crore
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Wakefit Q1 Profit Rises 19% to Rs 23.4 Crore
Wakefit’s net profit rose 19% year on year to Rs 23.4 crore in the June quarter, Inc42 reports. Operating revenue increased 17% to Rs 404.9 crore, taking total income, including Rs 15.6…
The Story in Brief
Wakefit’s net profit rose 19% year on year to Rs 23.4 crore in the June quarter, Inc42 reports. Operating revenue increased 17% to Rs 404.9 crore, taking total income, including Rs 15.6 crore in other income, to Rs 420.5 crore.
Profit fell 81% from Rs 121.7 crore in the previous quarter. Total expenses rose 14% year on year to Rs 384.2 crore. Tax expenses stood at Rs 12.9 crore, compared with a deferred tax credit of Rs 98.1 crore in the preceding quarter. The sharp sequential fall therefore reflects, in part, the absence of that earlier tax benefit.
The Indian Opinion
The easy story is that Wakefit delivered strong profit growth, or that its quarter was weak because profit fell sharply sequentially. Both claims miss the tax effect. Revenue growth was healthy, but the previous quarter benefited from a large deferred tax credit. Investors should focus on operating margins and whether revenue growth continues without heavier spending. The next quarter’s expenses and profit before tax will provide a cleaner test.
Source: inc42.com
This story was synthesised by AI from the source linked above.
