Approval of Standalone Audited Financial Results for the Quarter and Financial Year ended March 31, 2025
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Chennai Ferrous Industries, operating in the Sponge Iron and Coal segment, posted strong FY25 results with Net Sales rising ~60.6% year-on-year to Rs 21,905.61 lakhs (vs Rs 13,642.29 lakhs in FY24). Profit After Tax grew ~43.7% to Rs 401.08 lakhs (vs Rs 279.16 lakhs), taking basic EPS to Rs 11.13 from Rs 7.74. Q4 FY25 revenue surged to Rs 5,645.72 lakhs from Rs 1,956.02 lakhs a year ago, though Q4 PAT fell to Rs 18.62 lakhs (vs Rs 106.09 lakhs) on higher purchase and inventory-related costs. The Statutory Auditor, S.K. Gulecha & Associates, issued an unmodified (clean) opinion. However, operating cash flow worsened sharply to negative Rs 833.35 lakhs (vs negative Rs 260.45 lakhs), and EBITDA margin compressed to roughly 3.0% from about 4.2%. Reserves rose to Rs 2,188.35 lakhs, while trade payables nearly doubled to Rs 2,039.09 lakhs.
Strong revenue and earnings growth signal robust business expansion and are positive for shareholders, but the sharp deterioration in operating cash flow and compressing EBITDA margin raise concerns about working capital health and quality of earnings. Investors should weigh the top-line strength against the rising payables and negative cash generation before drawing conclusions on sustainability.