The embattled Brightcom Group's stock price sank five percent in early trade on June 12, after the firm reported its earnings for the quarter ended September 2024.
On May 16, Brightcom Group announced it was aiming to declare its quarterly results for the second and third quarters by June 11. However, the firm has only shared the earnings report for the September quarter so far.
For Q2 of the fiscal year 2024, Brightcom Group's revenue came in flat at Rs 112 crore, while the net profit rose marginally to Rs 63 lakh, up from Rs 59 lakh in the same quarter of FY23.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) slipped to Rs 1 crore for the quarter, down from Rs 3.92 crore year-on-year. The firm's margin narrowed to 0.9 percent compared to 3.47 percent YoY.
At 9.50 am, shares of Brightcom Group were quoting at Rs 9.88 apiece on the NSE, lower by five percent compared to the previous session's close.
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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.
The firm said, "The NSE notice indicates that the suspension of trading is contingent upon the company's failure to declare its quarterly results for the second (Q2) and third (Q3) quarters by June 11, 2024. We want to assure you that Brightcom Group is fully committed to meeting all
regulatory requirements and deadlines set by the exchanges."
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.
However, the regulator lifted the restrictions against veteran investor Shankar Sharma of not disposing of shares of Brightcom Group held by him directly or indirectly, on February 28.
As of March, veteran investor Shankar Sharma had a 1.14 percent stake in the Brightcom Group. Promoters of the company have a 18.38 percent stake in the firm.
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