Capri Global Capital Ltd (MMFSL) - Q1 Result

Financial Results & Limited Review for June 30, 2013
Link: Click Here

There was a major delay in posting the details about the Q1 Result from Money Matters (Capri Global Capital Ltd) from the day when they actually declared the result. The reason was, I wanted to understand the change they have made in showing the results from this quarter onwards. I mailed the company also, regarding the same, but they didnt reply as yet.

Hence finally, I decided to get into it myself, and found out the changes. It was simple.. :-)

If we consider the way they used to declare results earlier, then Revenues have once again jumped 400% from 190 Cr to 836 Cr YoY. (Check Point No. 8 in Press release to get this detail)
But, we wont be considering that method now.
We will start analysing the results according to new method.
The change in method is mentioned in Point No. 7 of Press release which says that "The company was earlier presenting the operating income on Gross Basis showing the sales in Bonds and securities and corresponding purchases and inventory movements seperately. However to reflect the net income generated from such activities, the company has decided to show revenues from operations on net basis from this quarter onwards. According the previous quarter numbers are recasted and reclassified."

This means that according to new method, the terms "Purchase of Traded Goods" and "Purchase of Traded Goods" in Expense section of result sheet, will be deducted firt from Gross Revenues and then, the net revenues will be shown. If one opens the result, he/she will understand this. So, in the result sheet from now on, you will not see any amount in the terms mentioned above, because they are already deducted.
Gross Sales = Total Sales in Bonds + Securities
Net Sales = Total Sales in Bonds + Securities - "Purchase of Traded Goods" - "Purchase of Traded Goods"
Net Sales will be considered as Revenues from now on.

Taking that consideration, lets look into results now.
Net Revenues stands at 34.15 Cr from 27.77 Cr YoY, which is 23% growth and from 33.54 Cr QoQ, which is almost flat.
Net Profits stands at 17 Cr from 13.61 Cr YoY, which is close to 25% growth, but it has come from 22.26 Cr to 17 Cr QoQ.
All in all, seems a good result in bad times.

My Views:I maintain my view here that it is an excellent stock for long term investment. Business is growing steadily, and now with this new collabration with Capri Global Capital, it should grow further. The only problem with this script is that it is very very illiquid. The general behaviour shown by this kind of scripts is that, they start moving up suddenly with volumes, achieve the levels it wants to, and then again goes into silent zone like it is right now.
If one takes my advise, I would say, dont miss a chance to enter the stock, whenever you get one.