TCI Industries Reports Q1 Loss and CFO Resignation

TCI Industries Limited , a company providing space for film shooting, rental income, TV serials, and advertisements, has announced its unaudited financial results for the first quarter ended June 30, along with significant changes in its leadership.

Financial Performance

The company reported a total revenue of Rs. 52.79 crore for Q1, compared to Rs. 38.63 crore in the same quarter of the previous year, marking a substantial increase of 36.7%. However, despite the revenue growth, TCI Industries posted a loss for the quarter.

The financial results reveal:

The company's expenses saw a significant rise, reaching Rs. 90.01 crore in the current Q1, up from Rs. 69.89 crore in the previous Q1. This increase in expenses outpaced the revenue growth, resulting in a higher loss before tax of Rs. 37.22 crore, compared to a loss of Rs. 31.22 crore in the same quarter last year.

Leadership Change

In a significant development, Mr. Amit A. Chavan has tendered his resignation from the positions of Company Secretary, Compliance Officer, and Chief Financial Officer (CFO) of TCI Industries Limited. Mr. Chavan's resignation, citing pursuit of career opportunities outside the organization, will be effective from the close of business hours on September 16.

The Board of Directors, in their meeting held on August 06, accepted Mr. Chavan's resignation. The company has not yet announced a successor for these crucial roles.

Other Corporate Actions

During the quarter, TCI Industries allotted 26,250 0% Non-Convertible Redeemable Preference Shares of Rs. 100 each at an issue price of Rs. 400, including a premium of Rs. 300. These shares are redeemable within 20 years from the date of issue or earlier at the company's discretion, with an 18% simple annual premium on the issue price payable at redemption.

The company has classified these preference shares as equity based on a legal opinion, in accordance with Ind-AS 32, which allows classification of financial instruments as equity or financial liability based on their substance rather than legal form.

TCI Industries continues to operate in a single segment, focusing on income from rendering services by providing space for film shooting, rental income, TV serials, and advertisements.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on August 06. V. Singhi & Associates, Chartered Accountants, the statutory auditors of the company, have carried out a limited review of these financial results as required under SEBI regulations.

As TCI Industries navigates through these financial challenges and leadership transitions, stakeholders will be keenly watching how the company adapts and strategizes for future growth in its niche market of film and entertainment infrastructure services.