Results: Centrum Capital reports net loss of Rs 42 crore for FY21
Results: Centrum Capital reports net loss of Rs 42 crore for FY21

Centrum Capital on Tuesday reported a consolidated net loss of Rs 5.54 crore for the last quarter of the fiscal ended March 2021, while the full year loss stood at Rs 42 crore.

The company, which is set to acquire the troubled PMC Bank alongside BharatPe, had reported a net profit of Rs 25.05 crore in the same quarter a year ago. The loss has narrowed sequentially from Rs 15.5 crore in the December 2020 quarter.

Total income during Q4 FY21, however, jumped 18.2 per cent to Rs 148.39 crore as against Rs 125.56 crore in Q4 FY20, Centrum Capital said in a regulatory filing.

For the full year 2020-21, the company reported a consolidated net loss of Rs 41.81 crore. There was a net profit of Rs 71.57 lakh in 2019-20.

Income for the full year jumped to Rs 513.15 crore as against Rs 480.48 crore earlier.

The non-banking financial company is engaged in institutional business, wealth management and distribution services, housing finance, SME/micro credit, among others.

The board of directors also approved raising up to Rs 1,000 crore by issuing bonds in one or more tranches, subject to the approval of shareholders, the company said.

Also, it has approved Rs 500 crore equity capital raise through a qualified institutional placement (QIP).

However, the board has decided not to recommend any dividend for financial year 2020-21 after taking into consideration the impact of the pandemic on the economy and the need to conserve resources, it added.

The company's step-down subsidiary Centrum Financial Services has received in-principle approval from the RBI to set up a small finance bank (SFB).

It is a joint venture floated by Centrum Group and digital payments startup BharatPe for launching a small finance bank.

The JV will infuse Rs 1,800 crore capital into troubled Punjab & Maharashtra Cooperative Bank (PMC) on its merger with the proposed SFB, Jaspal Bindra, executive chairman of Centrum Group, had said earlier this week.

Centrum Capital scrip closed at Rs 47.50 apiece on BSE, down 9.95 per cent.

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