CHOICEIN · Financial Services
Choice International Ltd. reported revenue of ₹209 cr for October to December 2024, +1.0% on the year and −15.4% on the quarter.
Operating profit (EBITDA) was ₹60.0 cr, a margin of 28.7%, −366 bps on the year and −206 bps on the quarter. Over the last 7 quarters the margin has ranged from 25.7% to 32.4%, averaging 28.7%. Operating costs grew +6.4%, faster than revenue at +1.0%, so operating profit grew less than sales.
Net profit was ₹31.0 cr, −22.5% on the year and −32.6% on the quarter, with earnings per share of ₹1.47. Profit before other income, one-offs and tax fell 22.6%, so the profit growth came from the business itself. The tax rate of 29% is in line with its recent average.
Asset managers and brokers earn fees on assets and activity, so revenue follows market levels and flows; treasury income can lift other income in a good market quarter. The quarterly statements do not carry assets under management, flows and the yield on assets; those come with the filing read.
On earnings per share of ₹7.19 over the last four quarters, the stock at ₹740.00 trades at 102.9 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Operating margin fell sharply on the year. Pricing, input costs, or mix?
EBITDA margin 28.7%, −366 bps on the year (−206 bps on the quarter).
Source: Quarterly statements
Finance cost rose fast and now takes a large bite of operating profit. New borrowing, or a higher rate?
Finance cost ₹16.0 cr, +45.5% on the year; 27% of EBITDA.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹207 cr | ₹215 cr | ₹201 cr | ₹247 cr | ₹209 cr | ₹253 cr | ₹235 cr | ₹274 cr | ₹303 cr | ₹307 cr | ₹310 cr | ₹373 cr |
| YoY | — | — | +46% | +29% | +1% | +18% | +17% | +11% | +45% | +21% | +32% | +36% |
| EBITDA margin | 32.4% | 31.2% | 26.4% | 30.8% | 28.7% | 37.9% | 35.3% | 32.5% | 37.0% | 37.8% | 33.8% | 33.4% |
| Other income, % of PBT | 5% | 4% | 12% | 3% | 5% | 3% | 5% | 13% | 5% | 8% | 12% | 7% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 28% | 29% | 26% | 23% | 29% | 28% | 24% | 24% | 29% | 22% | 24% | 26% |
| Net profit | ₹40.0 cr | ₹39.0 cr | ₹32.0 cr | ₹46.0 cr | ₹31.0 cr | ₹54.0 cr | ₹48.0 cr | ₹56.5 cr | ₹66.0 cr | ₹68.0 cr | ₹60.6 cr | ₹69.5 cr |
| YoY | — | — | +52% | +53% | −22% | +38% | +50% | +23% | +113% | +26% | +26% | +23% |
| Core profit YoY | — | — | +41% | +59% | −23% | +36% | +58% | +10% | +112% | +11% | +18% | +35% |
| EPS | ₹1.98 | ₹1.93 | ₹1.48 | ₹2.31 | ₹1.47 | ₹2.59 | ₹2.19 | ₹2.75 | ₹2.56 | ₹2.71 | ₹2.72 | ₹3.12 |
| Flags | · | · | 1 | 1 | 2 | 1 | 1 | ✓ | ✓ | ✓ | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Choice International Ltd. reported revenue of ₹209 cr (+1.0% on the year) and net profit of ₹31.0 cr (−22.5% on the year) for October to December 2024.
Profit before other income, exceptional items and tax moved −22.6% on the year, against −22.5% for reported profit.
2 checks raised a question: Operating margin fell sharply on the year. Pricing, input costs, or mix?
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