SBEC Systems Reports Net Loss of Rs 19.34 Lakhs in Q2, Board Addresses Regulatory Compliance

SBEC Systems (India) Limited , a technology services provider, has released its financial results for the second quarter and half-year ended September 30, revealing a mixed performance with increased revenue but a net loss for the quarter.

Financial Performance

For Q2, SBEC Systems reported:

Revenue from operations increased to Rs 91.58 lakhs, up from Rs 74.85 lakhs in the previous quarter.
A net loss of Rs 19.34 lakhs, compared to a profit of Rs 22.03 lakhs in Q1.
Total income, including other income, stood at Rs 113.50 lakhs.

For the half-year ended September 30:

The company posted a net profit of Rs 2.69 lakhs.
Total income reached Rs 208.48 lakhs.

Segment-wise Performance

SBEC Systems operates in two primary segments:

Technical Services/Consultancy Services
Solar Power Generation

The Technical Services segment reported a loss of Rs 42.06 lakhs for Q2, while the Solar Power Generation unit contributed a profit of Rs 22.72 lakhs.

Corporate Governance and Compliance

The Board of Directors, in their meeting held on November 12, addressed several key points:

Approved the unaudited financial results for Q2 and H1.
Noted the cessation of Mr. Jagdish Chander Chawla from the post of Independent Director, effective September 22, due to completion of his tenure.
Acknowledged an advisory letter from BSE regarding non-compliance under SEBI LODR Regulations, 2015.

The company has committed to exercising greater due diligence to ensure prompt compliance and avoid future regulatory issues.

Capital Reduction Scheme

SBEC Systems is currently pursuing a Scheme of Selective Capital Reduction, which was approved by the Board on June 26, 2023. Key updates include:

BSE issued a 'no adverse observations' letter on July 24, 2024.
Shareholders approved the scheme via Special Resolution at the 35th Annual General Meeting on September 28, 2024.
The matter is pending before the National Company Law Tribunal (NCLT), with the next hearing scheduled for November 17.

Regulatory Compliance

The company addressed a fine levied by BSE for non-compliance with Regulation 31 of SEBI LODR Regulations. The Board has assured that:

The fine has been paid within the prescribed timeline.
Measures will be taken to ensure due attention to all SEBI (LODR) compliances in the future.

Looking Ahead

While SBEC Systems faces challenges in its technical services segment, the solar power generation unit shows promise. The company's focus on regulatory compliance and the ongoing capital reduction scheme may impact its future financial structure and operations.

Investors and stakeholders should monitor the progress of the capital reduction scheme and the company's efforts to improve compliance with regulatory requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.96%	-9.00%	-16.16%	+19.17%	-56.23%	+336.17%

SBEC Systems (India) Limited , a company operating in technical services and solar power generation, has reported a significant increase in profit for the first quarter. The company also announced key corporate governance changes, including the appointment of a new secretarial auditor.

Financial Performance

SBEC Systems posted a standalone profit of Rs. 22.03 crore for Q1, marking an 11.15% increase from Rs. 19.82 crore in the same quarter last year. The company's revenue from operations rose to Rs. 74.83 crore, up 12.66% from Rs. 66.42 crore in Q1 of the previous year.

The financial results breakdown is as follows:

Particulars (in Rs. crore)	Q1 Current	Q1 Previous	% Change
Revenue from Operations	74.83	66.42	12.66%
Total Income	94.98	66.53	42.76%
Total Expenses	72.95	39.07	86.71%
Profit Before Tax	22.03	27.46	-19.77%
Profit After Tax	22.03	19.82	11.15%

It's worth noting that while the company's revenue and profit after tax increased, there was a decrease in profit before tax compared to the same quarter last year.

Segment Performance

SBEC Systems operates in two segments:

Technical Services/Consultancy Services
Solar Power Generation

The Solar Power Generation unit contributed significantly to the company's profitability, with a segment result of Rs. 23.81 crore before tax. The Technical Services segment, however, reported a loss of Rs. 1.78 crore.

Corporate Developments

The Board of Directors, in their recent meeting, approved several key decisions:

Appointment of Secretarial Auditor: M/s Soniya Gupta & Associates has been appointed as the Secretarial Auditor for a period of five years, subject to shareholder approval at the upcoming Annual General Meeting.
Board Committee Reconstitution: The Audit Committee, Nomination & Remuneration Committee, and Stakeholders Relationship Committee have been reconstituted.
Annual General Meeting: The notice for the 36th Annual General Meeting has been approved, along with the Directors Report, Corporate Governance Report, and Management Discussion and Analysis Report for the previous financial year.

Capital Reduction Scheme

The company's Scheme of Selective Capital Reduction, which was approved by the Board on June 26, 2023, and by shareholders on September 28, 2024, is currently pending before the National Company Law Tribunal (NCLT). The next hearing is scheduled for September 29, 2025.

Compliance with Supreme Court Order

In compliance with a Supreme Court order dated March 4, 2025, SBEC Systems, along with the promoter group of SBEC Sugar Limited, made a public announcement on June 2, 2025, to acquire shares of the Target Company as per SEBI regulations.

The financial results and corporate actions reflect SBEC Systems' efforts to strengthen its position in both the technical services and solar power sectors while addressing regulatory requirements and enhancing corporate governance practices.