Service Care Limited — Results, 30-12-2024: Reply to Clarification- Financial results

Service Care Limited reported significant financial results for the half-year ending September 30, 2024.

Total revenue from operations amounted to ₹93.84 crore, reflecting a year-over-year revenue growth of approximately 5.24% compared to the same period last year. Key drivers behind this growth likely include an increase in demand for their housekeeping and manpower services, along with strategic operational improvements.

The company achieved a net profit of ₹2.33 crore, up from ₹1.69 crore in the corresponding half of the previous year, resulting in an Earnings Per Share (EPS) of ₹2.03. Profitability was influenced by effective cost management, particularly in controlling employee benefits and other operating expenses, although employee costs still comprised the majority of total expenses at ₹90.86 crore.

Operational expenses increased slightly by 5.20% from the previous half year, indicating efficient cost management strategies are in effect despite rising costs. The balance sheet remains robust, with total assets at ₹56.54 crore as of the reporting date, up from ₹54.87 crore in March 2024, showcasing a healthy liquidity position.

In terms of strategic positioning, the company appears focused on enhancing service offerings and expanding market reach, responding to positive market sentiments. Overall, based on current performance and market outlook, it is suggested to hold the stock, considering the company's ability to manage costs effectively and potential for continued revenue growth amidst rising operational demands.