Despite the substantial YoY rise, the fintech company’s profit plunged 82% on a sequential basis from INR 6.41 Cr reported in Q1 FY25
Operating revenue rose 112% to INR 19.08 Cr from INR 9.05 Cr in Q2 FY24. On a QoQ basis, the company's revenue jumped about 21%
Since listing on BSE SME on July 5, 2023, Veefin’s share prices have surged nearly 7X
Fintech company Veefin Solutions reported a profit of INR 4.13 Cr in the second quarter of fiscal year 2024-25 (Q2 FY25), up 325% from INR 97.98 Lakh in the previous fiscal year.
However, profit declined 82% on a sequential basis from INR 6.41 Cr reported in Q1 FY25.
Excluding minority interest, the profit during the quarter stood at INR 3.52 Cr in Q2 FY25 as against INR 97.98 lakh in the year-ago quarter.
Operating revenue rose 112% to INR 19.08 Cr from INR 9.05 Cr in Q2 FY24. On a quarter-on-quarter basis (QoQ), the company’s revenue jumped about 21% from INR 15.91 Cr.
Founded in 2020 by Raja Debnath and Gautam Udani, Veefin offers supply chain finance and lending solutions to banks and non-banking financial companies (NBFCs) like Yes Bank, Jio Financial Services, IndusInd Bank, Hero FinCorp, among others.
The company got listed on the BSE SME on July 5, 2023 at INR 82 per share. Since listing, shares of Veefin have risen nearly 7X. The stock ended today’s trading session 4.62% higher at INR 567.75.
It is pertinent to note that Veefin had been on an acquisition spree in the last few months. It acquired stakes in companies like EpikInDiFi, Regime Tax Solutions and Nityo Infotech.
On June 14, Veefin acquired a 51% stake in IT services provider Esorifi Solutions for INR 6.10 Lakh. Then on August 12, it bought 51% stake in IT consulting services provider Infini Systems for INR 91.78 Lakh.
Through Infini, it acquired 100% stake in Nityo Tech on September 27 for INR 150 Cr. Three days later, it purchased 26% stake in Regime Tax Solutions for INR 32.48 Cr.
Where Did Veefin Spend?
The company’s expenses shot up to INR 15.06 Cr during the quarter under review, up 93% from INR 7.82 Cr in Q2 FY24 and 101% higher than INR 7.50 Cr in Q1 FY25.
Other Expenses: Uncategorised expenses accounted for half of the company’s total spending in the quarter. Other expenses stood at INR 7.14 Cr during the quarter under review, up 49% from INR 4.78 Cr in the year-ago quarter.
Employee Benefit Expenses: Veefin spent INR 5.54 Cr on employee welfare during the quarter, up 130% from INR 2.40 Cr in Q2 FY24.
Depreciation & Amortisation Expense: These expenses stood at INR 1.65 Cr for the quarter, up significantly from INR 23 Lakh in Q2 FY24.
