From Courtroom Drama to Boardroom Calm: GVP Infotech & Minosha India Strike ₹200 Million Settlement

GVP Infotech Ltd reported a significant development in its ongoing arbitration with Minosha India Ltd, which resulted in a deal that will redefine its bottom-line for the year.

 

The firm, which had filed arbitration claims against Minosha India for sums of around ₹3,950 million on different projects, has now settled. According to the settlement, GVP Infotech will get ₹200 million from Minosha India as the settlement amount.

 

But the settlement value is far less than the value claimed. Therefore, GVP Infotech will carry a differential of ₹900.2 million as a charge on its Profit and Loss account, the difference between the value claimed and the value settled.

 

This fiscal loss comes at a tough time for GVP Infotech. The company has just reported a net loss of ₹2.11 crore in the March 2025 quarter from a net profit of ₹3.11 crore in the corresponding quarter last fiscal. The sales for FY also dropped by a massive 82.89% to ₹5.69 crore in FY25 from ₹33.25 crore in FY24.

 

Key Highlights:

 

Arbitration Award: GVP Infotech and Minosha India have settled arbitration proceedings; GVP to receive ₹200 million.

 

Profit & Loss Impact: There will be a variance of ₹900.2 million booked to the P&L for the year, which reflects the shortfall of the initial claim.

 

Financial Performance: GVP Infotech posted a net loss of ₹2.64 crore in FY25, as sales fell by over 80% year-on-year.

 

Strategic Reset: The resolution ends a huge controversy but also calls for a massive write-down, which will hurt near-term profitability.

 

Source: Business Standard, Moneycontrol, India Infoline, NSE Annual Reports.