Rajputana Investment & Finance Limited (BSE: **539090**) is a specialized player in the Indian **pre-owned luxury car market**. Originally incorporated in **1941** in West Bengal, the company underwent a transformative strategic pivot in **2022**. This transition involved shifting its registered office to **Kerala** and altering its core business objects to focus exclusively on the high-end automobile sector, moving away from its legacy financial and investment roots. --- ### **Strategic Pivot & Business Model Evolution** The company’s current operations are the result of a fundamental shift approved by shareholders via **Postal Ballot** in **May 2022**. This pivot repositioned the firm to capture value in the premium automotive secondary market. * **Core Operations:** The business is centralized at a state-of-the-art facility in **Konikkara, Thrissur**, strategically located on the **Thrissur-Ernakulam highway**. * **Value Chain Integration:** * **Sourcing & Purchase:** Acquisition of high-end inventory from globally renowned luxury brands. * **Sales & Exchange:** Facilitating transactions for automobile enthusiasts nationwide. * **Technical Evaluation:** Implementation of advanced diagnostic tools to ensure inventory quality and market-aligned pricing, providing "peace of mind" to buyers. * **Park and Sale Services:** A specialized revenue stream involving the professional maintenance and sale of premium car stocks owned by third parties. * **Segment Focus:** The company operates under a single reportable segment: **Sales, Sourcing, and Exchange of pre-owned luxury cars**. --- ### **Ecosystem Partnerships & Related Party Framework** The company leverages a strategic relationship with the **BRD Group** to optimize its operational footprint and inventory velocity. These arrangements are governed under **Section 188** of the Companies Act. | Agreement Type | Partner | Terms & Financial Impact | | :--- | :--- | :--- | | **Park & Sale Commission** | **BRD Car World Limited** | Fixed commission of **₹1,50,000 per month** plus variable performance-based incentives. | | **Facility Lease** | **B R D Motors Limited** | Lease of the **Konikkara** premises; rent escalated from **₹10,000** to **₹50,000 per month** in **2024**. | | **Operational Support** | **BRD Group Entities** | Synergies in inventory management and sales velocity. | --- ### **Financial Performance Analysis** The company has demonstrated aggressive **top-line growth** since its pivot, though rapid scaling has impacted short-term margins. All figures are prepared under **Ind AS**. #### **Three-Year Financial Summary** | Particulars (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Total Revenue** | **650.82** | **317.12** | **114.17** | | **Total Expenses** | **600.93** | **247.29** | **105.21** | | **Profit Before Tax (PBT)** | **49.89** | **69.84** | **8.96** | | **Profit After Tax (PAT)** | **36.92** | **51.71** | **6.48** | #### **Key Financial Metrics & Observations** * **Revenue Velocity:** Total revenue surged by **105%** year-on-year in FY25, reaching **₹6.51 crore**. This follows a massive jump from the **₹1.14 crore** reported in FY23, validating the market demand for the new business model. * **Profitability Contraction:** Despite record revenue, **Net Profit (PAT)** declined by **28.6%** in FY25 (to **₹36.92 Lakh**) from the previous year. This was driven by a **143% increase** in **Total Expenses** associated with scaling operations and inventory costs. * **Taxation:** The company provided **₹12.97 Lakh** for tax in FY25, reflecting an effective tax rate of approximately **26%**. * **Capital Base:** The company maintains an **Authorized Capital** of **₹4.00 Crore** and a **Paid-up Capital** of **₹3.08 Crore**. --- ### **Corporate Governance & Compliance Roadmap** To support its growth phase, the company has reinforced its leadership and streamlined its listing status. * **Board Continuity:** In **May 2024**, the company re-appointed key **Independent Directors** (**Mr. Sunny Mathew** and **Ms. Liji Jmmy Thalakkottoor**) for second **5-year terms** (2024–2029). * **Listing & Delisting:** * Primary trading remains on the **BSE Limited (Scrip Code: 539090)**. * The company successfully completed a **Voluntary Delisting** from the **Calcutta Stock Exchange (CSE)** effective **December 11, 2024**. * **Audit Oversight:** Statutory audits are conducted by **M/s Ayyar & Cherian**. A new **Secretarial Auditor** was appointed in **2024** to ensure strict adherence to the **Companies Act 2013**. --- ### **Risk Management & Mitigation** The Board maintains a formal **Risk Management Policy** reviewed **quarterly** to balance the high-value nature of the luxury car trade with financial stability. * **Regulatory History:** Management addressed a past **non-compliance** from **FY 2022-23** regarding **Section 186**, where **₹2 crore** was invested in Non-convertible Debentures of **M/s Vanchinad Finance Private Limited** without a prior special resolution. Current protocols have been tightened to prevent recurrence. * **Inventory Risk:** Luxury car inventory is valued at the lower of cost or net realizable value, with continuous technical monitoring to mitigate **obsolescence**. * **Liquidity Position:** The company accepts **no public deposits** and reports **zero outstanding** principal or interest on borrowings. * **Audit Status:** The Auditor’s Report for **FY 2023-24** contained **zero qualifications**, indicating improved transparency in financial reporting. --- ### **Future Growth Strategy** * **National Hub Model:** Leveraging the Kerala facility as a central hub for national-level sourcing and sales to reach a wider demographic of luxury car enthusiasts. * **Client Retention:** Shifting focus toward long-term relationship management and transparent communication to build brand equity in the premium segment. * **Operational Integrity:** Utilizing diagnostic-backed evaluations as a competitive differentiator to provide "peace of mind" in a traditionally fragmented pre-owned market.