ASM Technologies Q1 Net Profit Rises 65% YoY

Revenue from operations: ₹1,936.93 (Q1 FY2027) vs ₹1,091.21 (Q1 FY2026) - 77% increase YoY
Other income: ₹24.00
Total Income: ₹1,960.93 vs ₹1,119.42 (Q1 FY2026)
Cost of goods sold: ₹939.89
Changes in inventories: (₹263.44) credit
Employee benefits expense: ₹567.09
Finance costs: ₹34.97
Depreciation and amortization: ₹39.83
Other expenses: ₹250.40
Total Expenses: ₹1,568.74
Profit before tax: ₹392.19 vs ₹220.35 (Q1 FY2026)
Tax expense: ₹121.82 (Current tax: ₹110.81, Deferred tax: ₹4.01, Prior Year tax: ₹7.00)
Net profit: ₹270.37 vs ₹163.29 (Q1 FY2026) - 65% increase YoY
Earnings per share (Basic & Diluted): ₹18.53 vs ₹11.19 (Q1 FY2026)

The Board of directors declared an interim dividend of ₹6 per share.

The consolidated results include the following entities:

1. ASM Digital Technologies Inc, USA (Subsidiary)

2. ASM Digital Technologies Pte Ltd, Singapore (Subsidiary)

3. R V Forms & Gears LLP (Subsidiary)

4. ASM Technologies KK, Japan (Subsidiary)

5. ASM HHV Private Limited (Jointly controlled entity)

6. ASM Digital Technologies Co Ltd, Thailand (Step down Subsidiary)

7. ASM Engineering Pvt Limited, United Kingdom (subsidiary)

8. ASM Digital Engineering Pvt Limited, United Kingdom (Step down subsidiary)

9. ASM Technologies Viet Nam Company Limited, Vietnam (subsidiary)

Non-current investments in Eclectic IQ (formerly Polylogyx): Carried at cost ₹8.03 million, disclosed fair value ₹12.65 million
Investments in Lavelle Networks Private Limited: Carried at cost ₹55.00 million, disclosed fair value ₹64.25 million
Company is in process of obtaining valuation reports in accordance with Ind AS 109
Management unable to obtain necessary cash flow data for formal valuation due to restrictions
Management believes there has been substantial increase in value based on recent investments and expects no impairment

New ERP system TCS iON™ implemented and undergoing stabilization
System bugs, process deficiencies/inaccuracies identified in various reports
Issues include: opening balances, inventory valuation, amortization of prepaid expenses, aging of debtors and creditors, fixed asset register, unbilled receivables
Company performed rectifications outside ERP system, including management estimate adjustments
Management represents unrectified errors not expected to have material impact
Corrective actions ongoing to stabilize ERP system

Three foreign subsidiaries not reviewed by auditors: Total revenues ₹24.49 million, net loss ₹0.48 million for quarter
Financial results based on management certification only
ASM Digital Technologies Pte Ltd and ASM Technologies KK - Japan have accumulated losses exceeding share capital, eroding net worth
Singapore subsidiary: Liabilities exceed assets by ₹23.10 million (SGD 316,236)
Japan subsidiary: Liabilities exceed assets by ₹8.9 million (JPY 15,073,376)
Holding company authorized to infuse further funds as required

Government of India notified four new labour codes on November 21, 2025, subsuming 29 existing labour laws
Incremental impact assessed and disclosed as exceptional item based on independent actuarial valuation for FY2026

During Q4 FY2024: Preferential allotment of 800,000 equity shares of ₹10 each at premium of ₹460.70 per share
Share warrants issued: 2,814,390 convertible at 1 equity share of ₹10 each at ₹470.70 per warrant
Total amount received: ₹1,701.30 million
Q3 FY2026: Allotted 1,556,984 equity shares
Funds utilized: ₹252.80 million for general corporate purposes, ₹892.80 million for organic and inorganic growth
Balance amount invested in fixed deposits and mutual funds as approved by Board

Business segments: Design Led Manufacturing (DLM) reported as manufacturing sector, Engineering R&D services (ERD) reported as service sector
Assets and liabilities not identified to reportable segments as used interchangeably