Announcement under regulation 30 (LODR)
Awaiting price reaction for this filing.
Eros International Media's board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024. On a consolidated basis, the company swung to a profit before tax of ₹15,015 lakhs versus a loss of ₹11,182 lakhs in the year-ago quarter, with a net profit of ₹13,787 lakhs (EPS ₹14.37). However, this profit was driven mainly by one-time items: a ₹15,431 lakh reversal of film-rights impairment at a foreign subsidiary and a ₹2,303 lakh gain from selling office premises. On a standalone basis, the company remained in the red with a loss of ₹665 lakhs. The board also appointed Patni Mandhana & Associates as internal auditor, C R Bhagwat as secretarial auditor for FY25-26, and Walker Chandiok & Co. LLP for transfer pricing work for FY24-25. The auditor Haribhakti & Co. LLP issued a qualified review report flagging long-overdue receivables from related parties, a SEBI show-cause notice and Enforcement Directorate searches, and a material uncertainty on going concern.
Shareholders should treat the headline profit with caution as it is largely propped up by exceptional/non-recurring items rather than core film distribution business. The auditor's explicit 'going concern' uncertainty, qualified opinion, ongoing SEBI investigation, ED search, and the company's fully eroded standalone net worth point to significant operational and regulatory risks that could weigh on the stock.