News Earnings Value Industries Limited Reports Wider Loss of ₹700.53 Million in Q2FY25 Under CIRPValue Industries Limited Reports Wider Loss of ₹700.53 Million in Q2FY25 Under CIRP
Value Industries Limited reported a net loss of ₹700.53 million for Q2FY25, wider than the ₹624.18 million loss in Q2FY24, with no revenue from operations during the quarter. The company, under CIRP since 2018, continues to face operational challenges with finance costs of ₹658.32 million being the primary expense driver. Total assets declined to ₹8,641.24 million with negative equity of ₹18,208.18 million, reflecting ongoing financial distress under insolvency proceedings.
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Value Industries Limited, a company under Corporate Insolvency Resolution Process (CIRP) since September 2018, has announced its unaudited financial results for the quarter ended September 30, 2024. The company reported a significantly wider net loss during the quarter, highlighting the ongoing challenges faced during the insolvency proceedings.
Financial Performance Overview
The company's financial performance for Q2FY25 reflects the continued operational difficulties under CIRP. Value Industries recorded no revenue from operations during the quarter, compared to ₹5.64 million in the corresponding quarter of the previous year.
| Metric | Q2FY25 | Q2FY24 | Change |
|---|---|---|---|
| Revenue from Operations | - | ₹5.64 million | -100% |
| Other Income | ₹0.77 million | ₹0.06 million | +1,183% |
| Total Income | ₹0.77 million | ₹5.71 million | -86.5% |
| Net Loss | ₹700.53 million | ₹624.18 million | +12.2% |
| Earnings Per Share | ₹(17.88) | ₹(15.93) | - |
Expense Analysis
Finance costs continued to be the major expense component, accounting for ₹658.32 million in Q2FY25 compared to ₹573.98 million in Q2FY24. The company's total expenses for the quarter stood at ₹701.30 million, up from ₹629.89 million in the previous year.
Key Expense Components:
- Finance costs: ₹658.32 million (Q2FY25) vs ₹573.98 million (Q2FY24)
- Depreciation and amortization: ₹36.87 million vs ₹43.55 million
- Employee benefits: ₹1.17 million vs ₹1.87 million
- Other expenses: ₹4.95 million vs ₹4.86 million
Half-Year Performance
For the half-year ended September 30, 2024, Value Industries reported a net loss of ₹1,382.76 million compared to ₹1,241.30 million in the corresponding period of the previous year. Total income for the half-year was ₹1.44 million, significantly lower than ₹6.17 million in H1FY24.
Balance Sheet Position
As of September 30, 2024, the company's total assets stood at ₹8,641.24 million, down from ₹8,711.50 million as of March 31, 2024. The company continues to have negative equity of ₹18,208.18 million, reflecting the accumulated losses and financial distress.
| Balance Sheet Item | Sep 30, 2024 | Mar 31, 2024 |
|---|---|---|
| Total Assets | ₹8,641.24 million | ₹8,711.50 million |
| Total Equity | ₹(18,208.18) million | ₹(16,825.72) million |
| Current Borrowings | ₹25,719.72 million | ₹24,421.44 million |
CIRP Status and Challenges
Value Industries Limited has been under CIRP since September 2018, along with 12 other Videocon group companies. The Resolution Professional, Mr. Abhijit Guhathakurta, continues to manage the company under the provisions of the Insolvency and Bankruptcy Code. The financial results were prepared under significant constraints, including limited manpower, operational challenges, and non-availability of complete pre-CIRP records.
The auditors have issued a disclaimer of conclusion due to various limitations, including incomplete documentation, ongoing investigations by government agencies, and the company's inability to comply with certain accounting standards requirements. Trading in the company's securities has remained suspended on BSE and NSE since June 16, 2021.
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