Board Meeting outcome for Audited Financial Results for quarter and financial year ended 31st March 2025
Awaiting price reaction for this filing.
Sanghi Industries Limited, part of the Adani Cement group (75% held by Ambuja Cements), reported audited results for FY25 with revenue from operations rising to ₹968.70 crore from ₹828.00 crore in FY24 (about 17% growth). However, the net loss widened sharply to ₹498.37 crore versus ₹448.79 crore in FY24. Power and fuel costs surged to ₹552.85 crore (from ₹377.54 crore) and depreciation more than doubled to ₹218.32 crore after a reassessment of useful life of the power plant. Exceptional items of ₹(121.20) crore were recorded, mainly provisions related to an electricity duty dispute with the Gujarat tax authorities and one-time charges for pre-payment of borrowings. Cash flow from operations was deeply negative at ₹(248.55) crore, and cash balances fell to ₹21.72 crore. Total borrowings stood at ₹2,485 crore against equity of only ₹612 crore. The auditor (SRBC & Co LLP) issued an unmodified opinion. The Board also approved the appointment of statutory and secretarial auditors for FY26-FY30 and noted a change in Company Secretary.
Negative for shareholders — losses are widening, cash burn is heavy, borrowings remain very high relative to a shrinking equity base, and a large electricity duty contingent liability of ₹174.15 crore hangs over the company. However, the company is a subsidiary of Ambuja Cements (Adani Group), which has injected ₹2,200 crore via preference shares and proposed a merger scheme that could eventually absorb Sanghi into Ambuja, which is the key longer-term catalyst for the stock.