Mumbai: Even a lifeless ship weighs heavy on the ocean—Infomedia Press Limited, once a towering lighthouse in India’s publishing industry, now drifts aimlessly in turbulent financial seas.
For the half-year ending 30 September 2024, losses have swelled to Rs 193.90 lakh, deepening the shadows over its future. Despite unwavering support from its anchor, Network18 Media & Investments Limited, the company remains mired in uncertainty, its sails tattered and hope for revival fading on the horizon. Stakeholders, like distant watchers on a stormy shore, ponder whether this vessel can ever find its course again.
Infomedia’s Q2 FY25 results reveal a grim narrative, underscored by a loss of Rs 87.81 lakh for the quarter. This marks a year-on-year escalation from Rs 90.83 lakh in Q2 FY24, compounding the company’s cumulative losses to Rs 10,805.01 lakh. Operating income remained at zero, reflecting its discontinued business operations, while finance costs surged to Rs 73.31 lakh for the quarter, up 3.86 per cent from Rs 70.58 lakh in Q2 FY24.
Other financial metrics further reflect this decline:
- Total Expenses: Increased to Rs 73.39 lakh from Rs 70.66 lakh in the corresponding quarter last year.
- Earnings Per Share (EPS): Fell from Rs (0.18) in Q2 FY24 to Rs (0.21) in Q2 FY25, reflecting diminished shareholder value.
The company’s equity position continues to deteriorate, with a negative net worth of Rs 5,639.70 lakh as of September 2024, widening from Rs 5,448.47 lakh at the close of March 2024. Total assets marginally increased to Rs 961.45 lakh, driven by slight improvements in current assets. However, non-current liabilities, primarily borrowings, escalated to Rs 6,543.77 lakh, signaling greater reliance on external funding.
Operating activities generated a net cash outflow of Rs 82.11 lakh in H1 FY25, reflecting weaker operational performance. Minor relief came from financing activities, which infused Rs 81.75 lakh, primarily through increased borrowings. Yet, the company’s cash reserves remain fragile at Rs 2.28 lakh.
Infomedia’s plight is rooted in discontinued operations, which have eroded its revenue streams and strained its ability to cover mounting liabilities. Despite assurances of financial support from Network18, the absence of a concrete revival plan exacerbates uncertainty. The management’s mention of exploring new business lines provides a glimmer of hope but lacks tangible direction.
