BSEBihar Sponge Iron LtdHighNeutral
Announced Thu, 29 May · 15:05 IST

Audited Financial Results for the 4th quarter and year ended 31st March, 2025 and outcome of Board Meeting held on 29th May, 2025

Qualified OpinionPat Growth 25pctRelated Party TransactionsContingent Liabilities IncreasedDebt Equity ThresholdResults View source PDF

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AI summary

Bihar Sponge Iron reported FY25 net revenue of Rs. 31,941.64 lakhs, up about 20% from Rs. 26,665.10 lakhs last year, while profit before tax rose roughly 40% to Rs. 1,039.43 lakhs (from Rs. 744.47 lakhs). EPS improved to Rs. 1.15 from Rs. 0.83. Despite the operational improvement, the auditors (Doogar & Associates) issued a Qualified Opinion flagging three unresolved items: Rs. 215.28 lakh penalty from South Eastern Coalfields pending in court, Rs. 8,272.61 lakh of unprovided interest on a Jharkhand government soft loan (waiver pending), and an undisclosed promoter loan settlement. If these qualifications were applied, the company would swing to a Rs. 7,448 lakh loss. Net worth remains deeply negative at Rs. (4,535.18) lakhs. The Board also approved selling an obsolete 5MW power plant to related party GS Pharmbutor Pvt Ltd for Rs. 1 crore and a five-year loan repayment MOU with the same party.

Likely market impact

Improved top-line and profit growth is positive, but the qualified audit, persistently negative net worth, and large contingent liabilities (over Rs. 8,500 lakhs if crystallized) remain serious red flags. Shareholders should watch for outcomes of the SECL penalty case and the Jharkhand interest waiver, as both could materially alter the financial picture. Related party dealings also raise governance concerns.