Starlog Enterprises Limited has taken a significant financial step to bolster its liquidity position. The company's board of directors has approved obtaining an unsecured loan of up to Rs. 15.00 crore from its wholly-owned subsidiary, Starport Logistics Limited.

Loan Details

• Maximum Amount: Rs. 15.00 crore
• Lender: Starport Logistics Limited (wholly-owned subsidiary)
• Nature of Loan: Unsecured
• Disbursement: Can be availed in one or more tranches

Board Meeting Highlights

• Date: August 26, 2025
• Time: 4:08 PM to 4:20 PM IST
• Key Decision: Approval to avail the unsecured loan facility

Strategic Implications

The decision to secure this loan facility from its subsidiary demonstrates Starlog Enterprises' proactive approach to managing its financial resources. By arranging this credit line, the company has ensured access to funds that can be utilized as and when required, providing financial flexibility in its operations.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Starlog Enterprises promptly disclosed this material development to the BSE Limited.

Management Statement

Edwina Dsouza, Whole-time Director of Starlog Enterprises Limited, signed off on the regulatory filing, underlining the board's approval of this financial arrangement.

This strategic move by Starlog Enterprises to secure a flexible loan facility from its subsidiary could potentially support the company's operational needs and growth initiatives.

Starlog Enterprises , a logistics and port infrastructure services provider, has reported a significant loss for the first quarter. The company's financial performance shows a stark contrast to the same period last year, with increased revenue accompanied by a substantial rise in expenses.

Financial Highlights

• Revenue: Starlog Enterprises saw an increase in revenue from operations, rising to ₹302.24 crore from ₹258.49 crore in the same quarter last year, marking a 16.9% year-over-year growth.

• Net Loss: The company reported a net loss of ₹214.35 crore for the quarter, compared to a profit of ₹18.83 crore in the same quarter last year.

• Expenses: Total expenditure surged to ₹537.88 crore from ₹267.65 crore in the corresponding quarter, primarily due to higher operation and administration costs.

• Earnings Per Share (EPS): The EPS declined to -₹1.33 from ₹0.20 in the previous year.

Operational Performance

The significant increase in operational costs, which rose to ₹348.31 crore from ₹134.29 crore year-over-year, was a major factor contributing to the company's loss. Employee costs also saw an uptick, reaching ₹70.97 crore compared to ₹53.55 crore in the same quarter last year.

Capital Raising

During the quarter, Starlog Enterprises issued 30 lakh equity shares at ₹50 per share on a preferential basis, raising ₹15 crore. This move increased the company's paid-up equity share capital to ₹149.67 crore from ₹119.67 crore.

Auditor's Observations

The company's auditors, Bhattacharya Das & Co., highlighted several points in their limited review report:

1. A discrepancy in the reported shareholding of Starlog Enterprises in South West Port Limited (SWPL).
2. An ongoing legal matter involving a Shortfall Undertaking of ₹6,627.20 lakh invoked by a subsidiary's lender.
3. Issues related to service tax input credit and conversion of preference shares in subsidiaries.

Management Commentary

Raj Atul Manek, Director of Starlog Enterprises, stated, "The Board of Directors has reviewed and approved the unaudited financial results for the quarter. While we've seen growth in our revenue, the increase in operational costs has significantly impacted our bottom line. We are actively working on strategies to optimize our expenses and improve profitability in the coming quarters."

Outlook

Despite the challenging quarter, Starlog Enterprises continues to operate in the logistics and port infrastructure sector. The company's ability to increase revenue suggests potential demand for its services, but managing operational costs will be crucial for future profitability.

Investors and stakeholders will be watching closely to see how the company addresses its increased expenses and leverages its recent capital raise to potentially improve its financial position in the upcoming quarters.