ENCLSOED HEREWITH BOARD MEETING OUTCOME DATED 30/05/2025
Awaiting price reaction for this filing.
The Board approved audited financial results for Q4 and FY ended March 31, 2025. FY25 revenue from operations jumped to ₹3,159.14 lakhs vs just ₹38 lakhs in FY24, largely driven by a one-time solar panel sub-contract with Telecrown Infratech. FY25 profit before tax was ₹1,146.37 lakhs, but a ₹300 lakh tax provision pulled net profit down to ₹846.37 lakhs (EPS ₹5.99). Q4 standalone numbers swung to a loss of ₹159.49 lakhs because the company reversed ₹8 crore of revenue booked in Q3 FY25 due to contractual disagreements with the principal contractor. Operating cash flow was deeply negative at ₹1,759.37 lakhs due to a sharp jump in trade receivables. The Board appointed new secretarial and internal auditors, accepted the CFO's resignation (May 21, 2025) and the Managing Director's resignation — Mrs. Sumita Mishra stepped down as MD but continues as Non-Executive Director. The auditor flagged an ongoing SAT appeal against a BSE order related to a prior preferential allotment but gave an otherwise clean opinion.
Short-term: the Q4 loss and revenue reversal signal weak earnings quality and contract-execution risk, while negative operating cash flow and bloated receivables (₹2,415 lakhs) raise working-capital concerns. Medium-term: leadership turnover at CFO and MD level adds governance uncertainty, though the company raised fresh equity (~₹1,623 lakhs) and posted a full-year profit, which may support investor confidence if the solar contract dispute is resolved favourably.