Brightcom Group shares Q2 earnings; no update on revocation of trading suspension

Brightcom Group announced that market regulator SEBI has imposed an Rs 8 lakh fine on the company.

Beleaguered media player Brightcom Group Ltd. reported its earnings for the quarter ended September on December 12, 2024.

The firm's consolidated revenue tumbled 28 percent year-on-year to Rs 1,308.78 crore. However, on a sequential basis, it was up 10.18 percent compared to Rs 1,182.4 crores in Q1 FY25.

Brightcom Group's consolidated profit after tax tumbled 47 percent to Rs 186.28 crore, down from Rs 352.7 crore during the same quarter in the year-ago period.

The firm announced its return on equity was 8.47 percent, while its consolidated tax rate was about 30.13 percent. Further, its operating cash flow was Rs 37.12 crore.

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Further, the firm did not clarify when its trading suspension would be revoked, which would allow the company's shares to trade on the exchanges again. Currently, Brightcom Group shares are available to trade on the first day of the week, on a trade-for-trade basis in the Z category.

On May 14, the National Stock Exchange said that trading in the shares of Brightcom Group will be suspended from June 14, till the time the company does not comply with the Master Circular.

"After 15 days of suspension, trading in the securities of non-compliant Company would be allowed on Trade for Trade basis in (Z category) on the first trading day of every week for six months," the circular said.

In 2023, the Securities and Exchange Board of India had investigated Brightcom Group's preferential issue of shares and warrants, for which some of the allottees did only partial payment. The regulator had issued an interim order dated August 22, 2023.

In the confirmatory order, Sebi's Whole-time Member Ashwani Bhatia has also suggested that the order be passed on to the Enforcement Directorate (ED) for the agency's examination since some of the transactions involved forex and may involve violation of laws pertaining to dealing in foreign exchanges.

In another exchange filing, Brightcom Group announced that market regulator SEBI has imposed an Rs 8 lakh fine on the company. The adjudication order cited delays in submitting financial results for the quarters ending September and December 2023, failure to disclose resignation letters, and delayed announcements regarding the resignation of directors, among other violations.

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