Telogica Limited Reports Profit Amid Financial Challenges

Telogica Limited , a technology company, has reported its unaudited financial results for the quarter and half-year ended September 30, 2023, revealing a mixed financial picture with both improvements and ongoing challenges.

Financial Performance

Telogica Limited posted a profit of ₹285.48 thousand for the period, marking a significant turnaround from the ₹10.75 million loss reported in the previous year. This positive shift in profitability comes despite revenue from operations remaining relatively stable at ₹44.29 million, compared to ₹44.44 million in the prior period.

Liquidity Improvement

The company's cash position saw a substantial improvement, with cash and cash equivalents rising to ₹17.52 million from ₹2.06 million previously. This increase in liquidity could provide some breathing room for the company's operations.

Ongoing Financial Challenges

Despite the profit reported this quarter, Telogica Limited continues to face significant financial hurdles:

• Net Worth Erosion: The company's net worth has been completely eroded due to continuous losses, resulting in a negative equity of ₹30.84 million.
• Increased Liabilities: Current liabilities have risen to ₹319.84 million from ₹256.99 million, indicating growing short-term obligations.
• Inventory Build-up: Inventories have increased to ₹72.54 million from ₹39.28 million, which could impact cash flow if not converted to sales efficiently.

Regulatory Concerns

The auditor's review has highlighted serious concerns regarding outstanding statutory dues:

• Total outstanding dues amount to ₹21.30 million
• These include payments for Provident Fund (PF), Employee State Insurance (ESI), Tax Deducted at Source (TDS), Goods and Services Tax (GST), and Professional Tax (PT)

The presence of these unpaid statutory dues raises questions about the company's compliance with regulatory requirements and its ability to meet financial obligations.

Conclusion

While Telogica Limited has managed to turn a profit this quarter, the company's financial health remains precarious. The complete erosion of net worth, increasing liabilities, and outstanding statutory dues present significant challenges that the management will need to address. Stakeholders will likely be watching closely to see if the company can sustain its profitability and resolve its financial and regulatory issues in the coming quarters.