Outcome for the Board meeting dated 20th May 2025
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The Board approved audited financial results for Q4 and FY ended March 31, 2025. Full-year revenue crashed sharply to Rs. 3,128.89 lakhs from Rs. 9,663.81 lakhs in FY24 (a drop of about 68%). Despite the revenue collapse, the company posted a net profit of Rs. 41.49 lakhs (vs a loss of Rs. 439.73 lakhs last year), aided by a Rs. 21.21 lakh exceptional item (waiver of preference dividend) and a Rs. 137.46 lakh deferred tax credit. The auditor (CNGSN & Associates LLP) issued an unmodified opinion but flagged two emphasis-of-matter items: outstanding statutory dues (Rs. 1.09 crore GST and Rs. 54.64 lakh TDS pending) and a revaluation of plant & machinery that added Rs. 3.17 crore to asset value. Operating cash flow turned negative at Rs. (162.60) lakhs, and other equity remains deeply negative at Rs. (2,934.41) lakhs. The Board also appointed B. Thiagarajan & Co. as internal auditors for FY26, approved a sub-division of unissued preference shares from Rs. 100 to Rs. 10 face value, reclassification of authorised capital, and a postal ballot covering material related party transactions for FY26.
The dramatic revenue decline and negative operating cash flow raise serious concerns about business momentum, even though reported PAT turned positive on the back of one-off items. Shareholders should note the deeply negative net worth, pending tax dues, and the significant scope expansion (defence, EVs, batteries, rare earths, hospitality, etc.) via the new MOA, which signals the company is looking well beyond its core construction business for survival and growth. Near-term stock sentiment may remain weak given the operating weakness, though the share split and broader objects clause could attract a wider investor base if executed.