Signature Global Shares Decline Over 4% Amid Weak Q3 Results, Plunge Over 30% in Six Months

Shares of Signature Global India Limited experienced a significant drop on Friday, falling 4.14% to close at Rs 1,042 after the company posted disappointing third quarter (Q3 FY25) financial results. This marks a continuation of a downward trend for the real estate developer, with its shares falling 13.64% in the past month, 30.34% over the last six months, and 22.1% year-on-year.

Signature Global Reports Increased Expenses and Liabilities

In its Q3 FY25 report, Signature Global disclosed a significant increase in total expenses, which rose to Rs 835.89 crore, up 6.54% from Rs 784.60 crore in Q2. Compared to Q3 FY24, the company’s expenses surged 179%, from Rs 299.70 crore. The company attributed this rise in expenses to higher project execution and completion costs, as per its filing with the stock exchange.

Additionally, Signature Global’s total liabilities showed a sharp rise, reaching Rs 11,525.72 crore in Q3, up 16.99% from Rs 9,852 crore in Q2 and 60.50% year-on-year. This significant increase in liabilities has raised concerns among investors regarding the company’s financial stability.

Revenue Growth and Profit Surge Amid Challenges

Despite the challenges posed by rising expenses and liabilities, Signature Global reported strong revenue growth. The company’s total income surged to Rs 830 crore in Q3, up from Rs 280 crore in Q3 FY24, driven by higher project completions and execution. Furthermore, Signature Global’s profit after tax (PAT) saw a substantial increase, rising to Rs 28.99 crore compared to just Rs 2 crore in the same quarter last year.

The company also reported an improvement in its adjusted EBITDA margin, which rose to 12% from 10% a year ago. Additionally, Signature Global successfully reduced its net debt to Rs 740 crore, down from Rs 1,160 crore at the end of FY24.

Outlook and Statement from Chairman

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Chairman and Whole-time Director Pradeep Kumar Aggarwal expressed confidence in the company’s financial future despite the challenges, stating, “The sustained improvement in our financial metrics, including strengthened collections and significant debt reduction, underscores our commitment to maintaining operational excellence while pursuing growth.”

While Signature Global’s financials reflect a mixed performance with both positive and concerning factors, the company is working towards stability and growth as it navigates through these turbulent times.