Approval of Payment of commission to Non-Executive, Non-Independent Director and re-appointment of Chief Compliance Officer
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Awaiting price reaction for this filing.
Sakthi Finance reported Q3 FY26 unaudited results with total income of Rs 5,887.31 lakhs (up ~7% YoY) but profit after tax of Rs 375.07 lakhs (down ~18% YoY). For the nine months ended December 2025, PAT stood at Rs 1,163.14 lakhs versus Rs 1,205.76 lakhs in the prior year period. EPS for Q3 was Rs 0.58 (vs Rs 0.71 YoY). The Board approved redemption of NCDs from Public Issues 6 and 7 between April 29 and May 8, 2026. It also approved commission of Rs 25 lakhs or 1% of net profits (whichever is lower) to Dr S Veluswamy, a Non-Executive Non-Independent Director, subject to shareholder approval via postal ballot. Sri S Venkatesh was re-appointed as Chief Compliance Officer for two years from March 6, 2026 while continuing as Company Secretary. Key ratios: GNPA at 4.81%, NNPA at 2.25%, Capital Adequacy Ratio at 18.72%, and Debt-Equity Ratio at 5.87.
Profitability has softened YoY despite revenue growth, mainly due to higher finance costs and impairment on financial instruments. NCD redemptions are scheduled in a routine, staggered manner and the security cover of 1.09 times is marginally below the 1.10x covenant, which investors should monitor. Commission to a promoter-group director and the CCO re-appointment are governance items requiring shareholder nod but unlikely to move the stock on their own.