Authum Investment & Infrastructure shares tank 12% on dismal Q2 show

Authum Investment & Infrastructure shares have rallied 65 percent in the past three months.

Shares of Authum Investment & Infrastucture nosedived over 12 percent to Rs 1,635 on the bourses on October 22 after the company reported a disappointing performance in the second quarter of FY25.

The non-banking financial company (NBFC) reported a sharp 49.2 percent year-on-year (YoY) drop in consolidated revenue from operations, which stood at Rs 1,092.62 crore for Q2FY25, compared to Rs 2,151.75 crore in the same period last year. Sequentially, revenue also declined 22.3 percent from Rs 1,416 crore posted in Q1FY25.

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Profit after tax, also known as net profit, plunged 56.5 percent on-year to Rs 843 crore, down from Rs 1,940 crore in the same quarter of the previous fiscal. On a quarter-on-quarter (QoQ) basis, Authum's net profit was down 23.1 percent from Rs 1,097 crore in the previous quarter.

Total expenses rose 45 percent year-on-year, reaching Rs 157.24 crore in Q2FY25, up from Rs 107.79 crore in the corresponding quarter a year ago.

Last week, the company entered into a purchase cum shareholders agreement with India SME Asset Reconstruction Company (ISARC) to buy 79 percent of the expanded share capital of ISARC. The company will purchase 13 crore equity shares, representing 56.5 percent of the expanded share capital of ISARC for Rs 176.8 crore, and 5.235 crore shares, representing 23 percent of the expanded share capital of ISARC for Rs 85.3 crore.

In early September, Authum Investment & Infrastructure bought 74.9 lakh shares or 1.2 percent stake in GMR Power and Urban Infra.

Authum Investment & Infrastructure, a Mumbai-based NBFC, focuses on investing in a wide range of financial assets such as equity, debt, real estate, and loan financing. The company also provides structured finance, secured lending, and equity investments in growing companies. Its portfolio includes investments in both listed and unlisted firms, as well as private equity and growth capital injections.

At about 12:17 pm, shares of the company were trading at Rs 1,655, down 11.4 percent from the last close on the NSE. Authum Investment & Infrastructure shares have rallied 65 percent in the past three months.

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