Board Meeting outcome for the Board Meeting held on 26th May 2025
Awaiting price reaction for this filing.
The Board approved Umang Dairies' audited financial results for Q4 and full-year FY25. Full-year revenue from operations fell sharply to ₹22,812.39 lakhs from ₹28,619.33 lakhs in FY24, a decline of about 20%. The company slipped to a loss before tax of ₹(17.24) lakhs (FY24 profit of ₹138.41 lakhs), though net profit after tax stayed marginally positive at ₹61.18 lakhs, supported by a deferred tax reversal of ₹83.98 lakhs due to a change in capital gains tax rate. Q4 revenue was ₹6,460.62 lakhs (vs ₹7,023.25 lakhs in Q4 FY24) and Q4 net profit was ₹80.03 lakhs versus ₹633.41 lakhs a year ago. The auditor (Singhi & Co.) issued an unmodified (clean) opinion. Operating cash flow turned negative at ₹(1,746.63) lakhs (vs ₹1,869.99 lakhs inflow in FY24), and short-term borrowings more than doubled to ₹6,299.63 lakhs, while long-term borrowings were fully repaid.
Weak operating performance with shrinking revenue, a near-breakeven bottom line propped up by a one-time deferred tax benefit, and negative operating cash flow point to stress. Short-term debt has ballooned, raising leverage concerns. Separately, the court-sanctioned Scheme of Arrangement – hiving off the dairy business into a subsidiary and amalgamating the residual business into the parent BACL – is a material corporate restructuring that will reshape the company and warrants close attention by shareholders.