Tera Software Limited , a technology solutions provider, has received a Goods and Services Tax (GST) demand order amounting to Rs 12,04,76,230 from the Assistant Commissioner of Commercial Taxes Department in Tenali, Andhra Pradesh. The order alleges discrepancies in the company's Input Tax Credit (ITC) claims and output tax declarations for the period from July 2017 to August 2019.

Details of the GST Demand

Company's Response

Tera Software has stated that the GST demand order does not have an immediate impact on its financial or operational activities. The company has indicated that it is taking steps to legally challenge the order, suggesting that it may dispute the allegations made by the tax department.

Implications and Next Steps

While the GST demand is significant, it's important to note that such orders are not uncommon in the business landscape, especially when dealing with complex tax structures like GST. The company's decision to legally challenge the order indicates its confidence in its tax compliance practices.

Investors and stakeholders should keep in mind that:

1. The company has stated there is no immediate financial or operational impact.
2. The legal challenge process may take time, and the final outcome could differ from the initial demand.
3. It's advisable to monitor future company disclosures for updates on this matter.

As the situation develops, Tera Software may provide more details on its strategy to address this tax demand and any potential long-term implications for the company's financials.

Tera Software Limited , a prominent player in the IT solutions sector, has announced its financial results for the second quarter, showcasing significant growth across key metrics.

Impressive Revenue Growth

The company reported a substantial increase in its consolidated revenue, which reached ₹714.00 crore for the quarter, compared to ₹253.00 crore in the same period last year. This remarkable growth of approximately 182% year-over-year underscores Tera Software's strong market position and effective business strategies.

Profitability Surge

Tera Software's profitability saw an even more impressive surge. The consolidated net profit for Q2 stood at ₹66.00 crore, a significant leap from ₹13.00 crore reported in the corresponding quarter of the previous year, marking a robust 407% increase.

Segment-wise Performance

The company's financial results reveal strong performances across its business segments:

The Projects Division emerged as the primary revenue driver, contributing significantly to both the top and bottom lines.

Financial Position

As of September 30, Tera Software's balance sheet reflects a solid financial position:

• Total Assets: ₹2,546.73 crore
• Equity Share Capital: ₹125.12 crore
• Other Equity: ₹1,210.82 crore

Management Commentary

T. Gopichand, Chairman and Managing Director of Tera Software Limited, commented on the results, stating, "Our Q2 performance reflects the company's ability to capitalize on market opportunities and deliver value to our stakeholders. The substantial growth in revenue and profitability is a testament to our team's hard work and our strategic initiatives."

Conclusion

The strong Q2 results position Tera Software favorably in the market. The company's focus on its core business segments, particularly the high-performing Projects Division, has contributed significantly to its current performance.

Note: All figures are based on the consolidated financial results for the quarter ended September 30, as reported by Tera Software Limited.