Brightcom Group declares Q2 Results: A major update for its 6.56 lakh retail investors

In an announcement on May 16, the company had mentioned that it is working towards declaring its quarterly results for the second and third quarter by June 11. However, results of the third quarter have not been announced.

For the September quarter, Brightcom Group’s revenue was flat at ₹112 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell to ₹1 crore from ₹3.92 crore during the same quarter last year.

Net profit for the period stood at ₹63 lakh from ₹59 lakh in the year-ago quarter, while margin narrowed to 0.9% from 3.47% last year.

Last month, the National Stock Exchange (NSE) had announced that trading in shares of the Brightcom Group will be suspended from June 14 and the suspension will continue till it complies with the master circular. After a 15-day suspension, trading will resume on a trade-for-trade basis or the ‘Z’ category on the first trading day of every week for the next six months.

Despite the issues plaguing the Brightcom Group, retail investors have continued to pile into the stock. As of the quarter that ended on March 31, the number of investors with share capital less than ₹2 lakh, who had shares of the Brightcom Group, stood at 6.6 lakh, which is higher than the 5.7 lakh number at the end of the December quarter.

Foreign Portfolio Investors (FPIs) too have a 10.7% stake in the Brightcom Group, with the Vanguard Funds having a 2.2% stake, while the LGOF Global Opportunities Fund having a 2.48% stake.

As of December last year, nine mutual funds had exposure to the Brightcom Group with a 0.17% stake, which is now down to three funds with a 0.15% holding.

Market Veteran Shankar Sharma also has a 1.14% stake in the Brightcom Group as of March.

Sharma and four other individuals were given relief by market regulator SEBI in February this year, in a matter related to alleged round-tripping of funds by Brightcom Group’s promoters. SEBI revoked the bar on Sharma from selling stake in the company after transaction details were submitted.

Promoters of the company still hold a 18.38% stake.

Shares of the Brightcom Group, which trade in a circuit band of 5%, have been trading in an upper circuit for the last two trading sessions. The stock ended at ₹10.41 on Tuesday.