Balurghat Technologies Reports Q1 Loss, Approves Executive Pay Raises
Balurghat Technologies Limited reported a net loss of Rs 66.83 crore for Q1, compared to a profit of Rs 41.63 crore in the same quarter last year. Revenue increased by 65% to Rs 2,792.42 crore. The board approved salary increases for key executives, including the Managing Director and COO, effective October 1. The company's 31st AGM is scheduled for September 10. Balurghat Technologies faces pending litigation totaling approximately Rs 59.28 crore across three cases.
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Balurghat Technologies Limited, a prominent player in the logistics and transportation sector, has reported a net loss for the first quarter, while also announcing significant changes in executive compensation and reappointments.
Financial Performance
The company reported a net loss of Rs 66.83 crore for Q1, a stark contrast to the profit of Rs 41.63 crore recorded in the same quarter last year. Despite the downturn in profitability, Balurghat Technologies saw a substantial increase in revenue, which rose to Rs 2,792.42 crore from Rs 1,691.28 crore year-over-year, marking a growth of approximately 65%.
The financial results for the quarter are as follows:
| Particulars (in Rs. Crore) | Q1 Current | Q1 Previous | % Change |
|---|---|---|---|
| Revenue | 2792.42 | 1691.28 | +65.11% |
| Total Expenses | 2868.00 | 1637.27 | +75.17% |
| Profit/(Loss) Before Tax | (66.83) | 56.26 | -218.79% |
| Net Profit/(Loss) | (66.83) | 41.63 | -260.53% |
The significant increase in expenses, which outpaced revenue growth, contributed to the quarterly loss.
Executive Remuneration Changes
The board has approved revised remuneration packages for key executives, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The salary increases, effective October 1, are as follows:
- Managing Director Pawan Kumar Sethia and Whole Time Director Arun Kumar Sethia: Increase from Rs 4 lakh to Rs 5 lakh monthly
- Chief Operating Officer (COO) Apurv Sethia and Chief Financial Officer (CFO) Ankit Sethia: Increase from Rs 2.5 lakh to Rs 3 lakh monthly
- Whole-Time Director Ravikant Sethia: Reappointed with a salary increase from Rs 3 lakh to Rs 4 lakh monthly
Corporate Governance and Upcoming AGM
The company's 31st AGM is set for September 10, to be held virtually through video conferencing. The board has appointed Mr. Udit Agarwal from Kamalia Associates as the scrutinizer to ensure a fair and transparent e-voting process.
Pending Litigation
Balurghat Technologies faces ongoing legal challenges with pending litigation totaling approximately Rs 59.28 crore across three cases:
- A dispute with Usha Martin Ltd. over transportation of goods and services, amounting to Rs 1.05 crore
- A rent control case with Rawal Investments in Maharashtra, involving Rs 0.40 crore
- A significant corporate guarantee case with IDBI Bank Ltd., with claims of Rs 57.84 crore
These legal matters remain unresolved and could potentially impact the company's future financial position.
Conclusion
While Balurghat Technologies has demonstrated strong revenue growth, the company faces challenges in maintaining profitability. The approved executive pay raises come at a time when the company is navigating through a loss-making quarter, reflecting the board's confidence in its leadership team to steer the company through current headwinds. Shareholders will be closely watching the upcoming AGM for further insights into the company's strategies to return to profitability and manage ongoing legal issues.
Historical Stock Returns for Balurghat Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.68% | -0.59% | -13.48% | -22.09% | -48.18% | +78.39% |
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