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Coffee Day posts Rs 190 crore loss in Q2

BENGALURU: Coffee Day Enterprises (CDEL), which runs the Cafe Coffee Day chain, reported a loss of Rs 190 crore for the second quarter ended September 30, compared to a profit of Rs 24 crore in the same period the year before, as per its management compiled numbers.
The stock exchanged had warned that CDEL’s shares would be suspended from trading if it failed to disclose its first quarter and half yearly results by January 29 as per Sebi norms. Whether the management compiled numbers would satisfy the exchanges remains to be seen.
Revenue from operations dropped 14% to Rs 843 crore, and the coffee business, which contributes the most, saw revenue drop 10% to Rs 384 crore on a loss of Rs 73 crore. The number of cafe outlets continued to shrink, now down to 1,469 from 1,758.
The company said it would require further time to submit its unaudited financial results (with the limited review by the auditor) as per Sebi regulations as the investigation regarding promoter VG Siddhartha’s last letter is still ongoing. “The said assignment is under progress and is likely to take few more weeks for completion,” the company said in a filing.
People in know of the matter said the company has requested for an extension of about a month and the exchanges are likely to grant a few more days considering the company’s situation. CDEL had appointed Ashok Malhotra, former DIG of CBI, to investigate the circumstances leading to the statements made in Siddhartha’s letter and to scrutinise the books of accounts of the parent company and the subsidiary.
Siddhartha’s letter, addressed to the board, referred to the debt burden he was under and subsequent pressure from investors which he indicated forced him to take his own life.
The company has since been defaulting on its loan repayments and lenders have been invoking the shares pledged with them.

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