Financial Results with Audit report and statement of deviation
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Starcom Information Technology Limited reported a net loss of Rs. 499.65 lakhs for FY25, an improvement from Rs. 768.60 lakhs loss in FY24. Revenue from operations grew ~65% YoY to Rs. 297.35 lakhs (vs Rs. 179.82 lakhs). Despite revenue growth, the company remains deeply distressed — net worth is fully eroded at negative Rs. 2,378.47 lakhs, current liabilities (Rs. 4,874 lakhs) far exceed current assets (Rs. 378 lakhs), and over Rs. 1,500 lakhs in statutory dues (GST, PF, TDS) are overdue. The auditor issued a qualified opinion citing three issues: overdue statutory dues, Rs. 607 lakhs in unpaid rent to a promoter-owned property, and Rs. 2,431 lakhs stuck in Intangible Assets Under Development for a long time. A separate 'Material Uncertainty Related to Going Concern' paragraph was included as the company has incurred cash losses and its net worth is fully eroded.
This is a high-risk situation for shareholders. The company is essentially insolvent on paper with negative net worth, and the auditor has flagged a going concern risk. Despite revenue growth, persistent losses, massive overdue tax liabilities, and unresolved doubts about the value of intangible assets under development make this a speculative, distressed stock. Shareholders face significant dilution or wipeout risk if new investors are brought in to revive the business.