Galaxy Agrico Exports Ltd., a key player in the agricultural export sector, has released its unaudited financial results for the third quarter of the fiscal year ending December 31, 2024. The results have been reviewed by the company’s Audit Committee and approved by the Board of Directors, complying with the SEBI regulations and Indian Accounting Standards (Ind AS). As a listed entity with BSE stock code 531911, Galaxy Agrico Exports Ltd. is required to disclose its financial performance for the quarter under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The document outlines essential financial aspects, including revenue, expenses, profit/loss, and other comprehensive income, giving shareholders and stakeholders an insight into the company’s current financial status.

The company reported a total income of ₹69.43 lakhs for the quarter, a significant decrease from ₹383.54 lakhs recorded in the previous year. The revenue from operations was ₹74.39 lakhs, down from ₹392.03 lakhs a year ago, reflecting operational hurdles that the company has faced in this period. The decrease in income is a crucial concern, as it points to external factors such as market demand and internal issues related to production and distribution. The other income was reported as a negative ₹4.97 lakhs, indicating a decline compared to the ₹2.59 lakhs earned in the previous quarter.

In terms of expenses, the company spent ₹31.07 lakhs on employee benefits, which remains high despite the falling revenue. Other significant costs include finance costs of ₹0.39 lakhs, depreciation and amortization expenses at ₹7.46 lakhs, and other operational expenses of ₹52.92 lakhs. The total expenses for the quarter amounted to ₹80.42 lakhs, surpassing the income generated during the same period. This mismatch between income and expenses has resulted in a net loss for the quarter.

Notably, the company experienced a loss before tax of ₹10.99 lakhs, and after accounting for the tax expenses including deferred taxes, the net loss for the quarter stood at ₹8.47 lakhs. The loss per equity share during this period was ₹0.31, compared to a profit of ₹0.35 during the previous quarter. These figures illustrate the challenges faced by the company in managing its financial operations and adhering to profitability targets.

In addition to the income statement, the company’s results included a comprehensive income of ₹-7.10 lakhs, a significant reduction from the previous year’s comprehensive income of ₹13.05 lakhs. The other comprehensive income for the quarter included adjustments such as ₹1.83 lakhs for items not reclassified to profit or loss, net of tax.

The company has also noted in its audit report that the inspection of fixed assets and inventories was not conducted during this period. This audit qualification has raised concerns, as there was insufficient evidence to verify the existence and condition of the company’s fixed assets and inventory. This issue could potentially impact the reliability of the financial results and the company’s ability to manage its resources effectively. As per the auditor’s review, this lapse in asset verification has led to an incomplete assessment of the company’s financial position.

Additionally, the company has provided details of its compliance with the Code on Social Security, 2020, which may affect employee-related contributions. However, the exact impact remains unclear until further regulations are released.

Despite the current challenges, Galaxy Agrico Exports Ltd. continues to comply with SEBI regulations and remains committed to transparent financial reporting. The Board of Directors has emphasized the importance of strategic actions to address the issues highlighted in the current financial period. Moving forward, the company aims to improve its revenue generation while managing expenses more effectively to return to profitability in the coming quarters.

In conclusion, the financial results for the third quarter of 2024 highlight significant financial losses for Galaxy Agrico Exports Ltd., driven by reduced income, operational challenges, and high costs. However, the company’s commitment to regulatory compliance and transparency remains evident. Going forward, shareholders and stakeholders will closely monitor how the company adapts to these financial pressures and implements corrective measures to restore growth and profitability.