Audited Financial results for quarter and year ended 31.03.2025
Awaiting price reaction for this filing.
Hemadri Cements Limited reported a sharp deterioration in its FY25 financial performance. Revenue from operations collapsed to Rs. 794.62 lakhs from Rs. 5,585.93 lakhs in FY24, an ~86% decline, with zero revenue in Q4 FY25 as the company temporarily suspended manufacturing operations in August 2024 due to adverse market conditions and high production costs. The company swung to a wider net loss of Rs. 2,705.91 lakhs (FY24 loss: Rs. 1,093.17 lakhs), translating to a loss per share of Rs. 40.57. The auditor (S B S B and Associates) issued an unmodified opinion but included an Emphasis of Matter paragraph highlighting that the company has been incurring continuous losses since FY23 and its net worth has been fully eroded. To stay afloat, the company borrowed Rs. 1,927.71 lakhs from group companies during the year, and operating cash flow remained negative at Rs. 691.52 lakhs.
This is a deeply concerning filing for shareholders. The fully eroded net worth, suspended operations, continuous losses, and dependence on related-party funding raise serious doubts about the company's viability. With an unmodified but emphasis-of-matter audit report and zero Q4 revenue, investors should expect continued pressure on the stock price and monitor whether operations resume and funding support continues.