Mumbai, January 31, 2025
SAB Events & Governance Now Media Limited (BSE: 540081, NSE: SABEVENTS) has announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The company's performance reflects continued financial challenges, with revenue growth but persistent losses.Key Financial Highlights (₹ in Lakhs)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 43.92 | 57.04 | 34.49 | 116.86 | 95.99 | 176.83 |
| Other Income | 40.94 | 0.00 | 10.21 | 40.94 | 23.30 | 24.32 |
| Total Income | 84.86 | 57.94 | 44.70 | 157.80 | 119.29 | 201.15 |
| Total Expenses | 64.80 | 75.64 | 57.39 | 201.44 | 226.25 | 307.27 |
| Profit/(Loss) Before Tax | 20.05 | (21.69) | (42.69) | (43.64) | (106.95) | (106.12) |
| Net Profit/(Loss) After Tax | 20.05 | (21.69) | (42.69) | (43.64) | (106.95) | (109.31) |
| Earnings Per Share (₹) | 0.19 | (0.21) | (0.41) | (0.42) | (1.02) | (1.04) |
Performance Analysis
- Revenue Growth: Revenue from operations for Q3 FY25 stood at ₹43.92 lakh, marking a 27.4% YoY increase from ₹34.49 lakh in Q3 FY24 but a 23% QoQ decline from ₹57.04 lakh in Q2 FY25.
- Other Income Surge: A significant ₹40.94 lakh boost in other income contributed to the improved quarterly performance.
- Net Profit Recovery: The company reported a profit of ₹20.05 lakh, a notable turnaround from the ₹42.69 lakh loss in Q3 FY24 and ₹21.69 lakh loss in Q2 FY25.
- Persisting Challenges: Despite the quarterly profit, 9M FY25 losses stood at ₹43.64 lakh, indicating underlying operational inefficiencies.
Corporate Announcements & Challenges
- Resolution Plan for Sri Adhikari Brothers Television Network Ltd.: SAB Events, along with Marvel Media Private Limited and key stakeholders, successfully acquired the distressed Sri Adhikari Brothers Television Network Ltd. via an NCLT-approved resolution plan.
- Financial Stress & Going Concern Risk: The company continues to face liquidity challenges, with current liabilities exceeding current assets by 4.7 times, raising concerns about its ability to meet debt obligations.
- Audit Observations:
- Potential impairment of goodwill (₹81.52 lakh) remains unassessed.
- Interest expenses of ₹18.02 lakh on outstanding loans have not been recognized.
Management Commentary
Kailasnath Adhikari, Managing Director, stated:"We are pleased with the revenue growth and return to profitability this quarter. However, we recognize the financial constraints and are working towards stabilizing cash flows and strengthening our operational efficiency."
Outlook
- Expansion in Digital Media & Events: The company is gradually increasing ground event activities, which could contribute to revenue stabilization.
- Debt Management: Addressing debt obligations remains a key priority for sustained financial recovery.
- Operational Challenges: The company must significantly improve cash flow and raise long-term funds to secure its financial future.