Starlog Enterprises Reports ₹214.35 Crore Loss in Q1

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.