AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2025
Awaiting price reaction for this filing.
Aban Offshore reported a sharp turnaround in FY25 with a net profit of Rs. 1,701.08 million against a loss of Rs. 2,829.79 million in FY24, while total income jumped to Rs. 3,095.46 million from Rs. 1,004.20 million. However, the statutory auditor issued a qualified opinion on standalone results because the company failed to obtain bank balance confirmations covering deposits of Rs. 114.58 million and term loans of Rs. 4,012.88 million. On consolidated accounts, the auditor issued a disclaimer of opinion, citing going-concern doubts at the Singapore subsidiary and inability to verify bank borrowings, investments and inter-company balances. The auditor also flagged a material going-concern uncertainty: net worth is deeply negative at Rs. (9,943.59) million, accumulated losses stand at Rs. 32,168.34 million, and current liabilities exceed current assets by Rs. 12,341.62 million. The company has defaulted on bank loan instalments, interest payments and redemption of Rs. 2,810 million of non-convertible preference shares, with debt-equity ratio turning negative and credit rating at CARE D.
Shareholders face a mixed picture: headline profits mask an underlying business propped up by write-backs and forex gains, while the negative net worth, loan defaults, preference share non-redemption and CARE D rating point to serious solvency stress. The going-concern emphasis and auditor's disclaimer mean lenders' debt resolution outcome will be the key swing factor for equity value.