Eros International Media Limited has informed the Exchange regarding 'Eros International Media Limited has submitted to the Exchange, the financial results for the period ended June 30, 2024'.
Awaiting price reaction for this filing.
Eros International Media filed its unaudited standalone and consolidated financial results for the quarter ended June 30, 2024 — nearly 11 months after the period end. On a consolidated basis, the company swung to a net profit of ₹13,787 lakhs (EPS ₹14.37) versus a loss of ₹11,175 lakhs in the year-ago quarter. However, this profit is almost entirely driven by 'other income' of ₹17,750 lakhs, which includes a one-time reversal of film rights impairment of ₹15,431 lakhs and a ₹2,303 lakhs gain from sale of office premises. Standalone results show a loss of ₹665 lakhs, with the auditor noting that the company's net worth has been completely eroded. The statutory auditor (Haribhakti & Co. LLP) flagged a material uncertainty relating to going concern on both sets of results, citing current liabilities exceeding current assets and defaults on statutory dues. The auditor issued a qualified conclusion on standalone results, highlighting ₹25,150 lakhs in expected credit losses on long-overdue related-party receivables, ongoing SEBI proceedings (Show Cause Notice received July 2024), and Enforcement Directorate search operations at the registered office in February 2025. The board also approved new internal, secretarial, and transfer-pricing auditors for FY25-26.
This is a significant red flag for shareholders. The auditor's explicit going-concern warning and qualified opinion indicate serious doubt about the company's ability to continue as a going concern. The reported 'profit' is essentially an accounting artifact from reversing past impairments, not genuine operational improvement — core business remains weak. Investors should expect negative stock reaction and heightened regulatory risk from the SEBI and ED matters.