Audited Financial Results of the Company for the quarter and financial year ended on March 31, 2025
Awaiting price reaction for this filing.
Carnation Industries reported its first full-year results after exiting the Corporate Insolvency Resolution Process (CIRP) on June 5, 2024, per NCLT order. The company posted a net profit of Rs. 142.44 lakhs for FY25 versus a loss of Rs. 49.30 lakhs in FY24, with EPS of Rs. 4.12. However, this profit came entirely from a one-time write-back of liabilities of Rs. 233.84 lakhs — the company has zero revenue from operations and has not yet started business activities. Q4 FY25 standalone showed a loss of Rs. 49.47 lakhs. Total assets rose to Rs. 230.72 lakhs from Rs. 130.38 lakhs, supported by Rs. 311.08 lakhs in funds from the resolution applicant. Operating cash flow was negative at Rs. -101.03 lakhs. Auditor Jain Saraogi & Co LLP issued an unmodified opinion but flagged multiple emphasis-of-matter notes including unresolved charges with ROC, assets held for sale, and pending IEPF dividend transfer.
The headline profit is misleading — it stems from a one-time accounting write-back, not real business activity. With no operating revenue, negative operating cash flow, and the company yet to commence operations, the stock remains a speculative restructuring play rather than an earnings story. Shareholders should monitor whether management actually launches business operations as planned.