ITV

Tag: finance costs

  • Infomedia Press faces turbulence as total expenses rise to Rs 73.39 lakh

    Infomedia Press faces turbulence as total expenses rise to Rs 73.39 lakh

    Mumbai: Even a lifeless ship weighs heavy on the ocean—Infomedia Press Limited, once a towering lighthouse in India’s publishing industry, now drifts aimlessly in turbulent financial seas.

    For the half-year ending 30 September 2024, losses have swelled to Rs 193.90 lakh, deepening the shadows over its future. Despite unwavering support from its anchor, Network18 Media & Investments Limited, the company remains mired in uncertainty, its sails tattered and hope for revival fading on the horizon. Stakeholders, like distant watchers on a stormy shore, ponder whether this vessel can ever find its course again.  

    Infomedia’s Q2 FY25 results reveal a grim narrative, underscored by a loss of Rs 87.81 lakh for the quarter. This marks a year-on-year escalation from Rs 90.83 lakh in Q2 FY24, compounding the company’s cumulative losses to Rs 10,805.01 lakh. Operating income remained at zero, reflecting its discontinued business operations, while finance costs surged to Rs 73.31 lakh for the quarter, up 3.86 per cent from Rs 70.58 lakh in Q2 FY24.  

    Other financial metrics further reflect this decline:  

    – Total Expenses: Increased to Rs 73.39 lakh from Rs 70.66 lakh in the corresponding quarter last year.  

    – Earnings Per Share (EPS): Fell from Rs (0.18) in Q2 FY24 to Rs (0.21) in Q2 FY25, reflecting diminished shareholder value.  

    The company’s equity position continues to deteriorate, with a negative net worth of Rs 5,639.70 lakh as of September 2024, widening from Rs 5,448.47 lakh at the close of March 2024. Total assets marginally increased to Rs 961.45 lakh, driven by slight improvements in current assets. However, non-current liabilities, primarily borrowings, escalated to Rs 6,543.77 lakh, signaling greater reliance on external funding.  

    Operating activities generated a net cash outflow of Rs 82.11 lakh in H1 FY25, reflecting weaker operational performance. Minor relief came from financing activities, which infused Rs 81.75 lakh, primarily through increased borrowings. Yet, the company’s cash reserves remain fragile at Rs 2.28 lakh.  

    Infomedia’s plight is rooted in discontinued operations, which have eroded its revenue streams and strained its ability to cover mounting liabilities. Despite assurances of financial support from Network18, the absence of a concrete revival plan exacerbates uncertainty. The management’s mention of exploring new business lines provides a glimmer of hope but lacks tangible direction.  

  • Adani Power Q2 FY25 profits dwindle amid rising fuel costs and debt

    Adani Power Q2 FY25 profits dwindle amid rising fuel costs and debt

    Mumbai: In a market increasingly driven by challenges, Adani Power’s Q2 FY25 financial report paints a bleak picture. With a consolidated profit of Rs 3,297.52 crores—a sharp decrease from last year’s Rs 6,594.17 crores—the company finds itself navigating rising fuel costs and increased debt obligations that are quickly eroding its bottom line.

    Adani Power’s Q2 revenues showed marginal growth to Rs 13,338.88 crores, a slight rise from Rs 12,990.58 crores in Q2 FY24. However, this pliability is overshadowed by mounting expenses, particularly in fuel costs, which surged by 4 per cent year-over-year to Rs 7,032.22 crores. As the company relies heavily on imported coal, volatile global energy prices have sharply impacted operating costs, squeezing profit margins even further.

    The debt situation poses a critical challenge. The company’s consolidated finance costs stood at Rs 806.87 crores, indicating a substantial debt load that continues to swell. Adani Power’s current liabilities reached an alarming Rs 52,788.77 crores, up from Rs 49,179.74 crores just a year ago. With recent borrowings amounting to Rs 5,000 crores, the company’s strategy to navigate debt remains a question mark for investors.

    Adding to the financial strain, deferred tax expenses have spiked, with an expense of Rs 706.30 crores in Q2 FY25 compared to a tax credit last year. Coupled with a reduction in net profit and mounting tax liabilities, the company’s financial health appears fragile, risking potential downgrades from creditors.

    In Q2, the board also approved an amalgamation with Adani Power Jharkhand, a move intended to streamline operations. Despite the expected efficiencies, this restructuring might not yield immediate financial benefits, adding complexity to an already stressed balance sheet.

    While Adani Power continues to expand its portfolio, these fiscal pressures pose significant hurdles. The immediate challenge lies in addressing fuel costs and debt servicing, with failure to mitigate these factors likely to strain cash flows and diminish investor confidence.