Logiciel swung to a second-half loss as employee costs hit 72% of revenue
Full-year profit halved to ₹2.35 cr on ₹20.73 cr in revenue, but the real story is a first-half profit turning into a ₹1.43 cr loss.
What's new
- Logiciel swung to a pre-tax loss of ₹1.43 cr in H2 from a profit of ₹4.75 cr in H1.
- Full-year net profit halved to ₹2.35 cr on revenue of ₹20.73 cr, barely changed year-on-year.
- Employee costs jumped to ₹14.82 cr for the year, outstripping revenue growth and hitting 72% of sales.
Why this matters
For a software firm with ₹20.73 cr in annual revenue, the math is stark. Employee costs consumed 72% of every rupee of sales. The sequential swing from profit to loss suggests this cost base is not only large but expanding faster than the business it supports.
What we're watching
- Whether the H2 cost surge is a new baseline or a one-time ramp.
- Management's plan to align headcount spending with the ₹20 cr revenue run-rate.
- Any signs of client or project churn driving the sequential revenue drop.
The full read
Logiciel's full-year numbers hide the real damage. Net profit halved to ₹2.35 cr on ₹20.73 cr in revenue, but the top line barely budged year-on-year. The pain is all in the second half, where a ₹4.75 cr profit turned into a ₹1.43 cr loss. The culprit is employee costs, which jumped to ₹14.82 cr for the year and reached 72% of revenue. That is a massive cost base for a firm this size. The swing from profit to loss suggests the company either over-hired or lost contracts, or both. Either way, the cost structure is now misaligned with the revenue it generates.
Questions answered
- What happened between the first and second half?
- Logiciel turned a pre-tax profit of ₹4.75 cr in H1 into a loss of ₹1.43 cr in H2. The swing was driven by falling revenue and spiking employee costs.
- How large is the employee cost problem?
- Employee costs were ₹14.82 cr for the year, which is about 72% of total revenue of ₹20.73 cr. This ratio leaves almost no room for other expenses or profit.
- Did exceptional items cause the loss?
- No. The company attributed no exceptional items. The loss stemmed from operational factors: lower sequential revenue and higher employee spending.
- How did the full-year profit change?
- Full-year net profit fell to ₹2.35 cr from ₹5.17 cr in the prior year, a 55% drop, while revenue was roughly flat.