RK Swamy profit declines by 53.8% to Rs 12.3 crore in Q4FY25
In full fiscal 2025, the profit plunged by 53% to Rs 18.6 crore. In FY24, the company had clocked a profit of Rs 39.7 crore
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RK Swamy, the integrated marketing services provider, on Wednesday announced its fourth quarter results for the fiscal year 2025. The company reported a 53.8% decline in its March quarter (Q4) profit compared to the same period last year.
RK Swamy's Q4FY25 profit stood at Rs 12.3 crore compared to Rs 26.1 crore in Q4FY24.
In full fiscal 2025, the profit plunged by 53% to Rs 18.6 crore. In FY24, the company had clocked a profit of Rs 39.7 crore.
RK Swamy's EBITDA witnessed a significant drop in FY2025. According to the Q4 earnings, the company's EBITDA declined from Rs 74.29 crore in FY24 to Rs 41.41 crore--a 44.3% drop.
The EBITDA margin reduced to 13.5% in fiscal 2025.
The company's revenue from operations also dropped from Rs 118.2 crore in Q4FY24 to Rs 83.5 crore in Q4FY25. Overall, the revenue from operations in FY25 stood at Rs 294.2 crore--a decline of 11.17% (Rs 331.5 crore).
The consolidated total income of the company stood at Rs 306.15 crore for FY25 compared to Rs 335.39 crore, a year ago--a decline of 8.7%.
Company's Chief Financial Officer (CFO) Rajeev Newar attributed the decline in revenue to non-recurring projects.
"Decline in revenue is attributable to a few significant projects undertaken in the previous year, which were of a non-recurring nature," Newar said.
However, Newar said that fresh investments had an impact on the profitability.
"We have made fresh investments, which had an impact on the current year's profitability. The management took a bold call to build capacity in many areas as outlined here. This is our confidence in what the future holds," the CFO added.
The company recently announced a series of strategic initiatives, such as the R K SWAMY Centre for Study of Indian Markets, and the development of proprietary tools to measure viewership of cricket and the effectiveness of digital video advertising. The company also unveiled new capabilities in producing anamorphic video content for large-format screens and announced the application of artificial intelligence across its core disciplines.
Other strategic moves include the formation of a Brand and Marketing Consulting Group and expanded offerings for the pharmaceutical sector.
