OUTCOME OF BOARD MEETING HELD ON 29-05-2025 FOR APPROVAL OF FINANCIALS OF THE COMPANY FOR THE QUARTER AND YEAR ENDED ON 31-03-2025
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ERP Soft Systems Limited's Board approved the audited consolidated and standalone financial results for Q4 and FY ended 31-March-2025, which received an unmodified (clean) opinion from statutory auditors M/s. Vijayaraghavan & Associates. The company also appointed M G S Reddy & Co as Internal Auditors and M/s. S.S. Reddy & Associates as Secretarial Auditors for FY 2025-26. On a consolidated basis, FY25 revenue from operations fell to Rs. 964.55 lakhs from Rs. 1,170.37 lakhs in FY24 (a decline of about 17.6%), yet profit after tax rose to Rs. 21.83 lakhs from Rs. 17.39 lakhs (up around 25.5%), with EPS at Rs. 0.55 vs Rs. 0.44. Standalone results show an even sharper revenue drop (Rs. 155.12 lakhs vs Rs. 212.62 lakhs, down ~27%) but PAT improved to Rs. 12.64 lakhs from Rs. 9.40 lakhs. Operating cash flow was deeply negative at Rs. (514.25) lakhs consolidated and Rs. (585.57) lakhs standalone, mainly due to a sharp rise in trade receivables and other current assets.
Margins improved and bottom line grew despite weaker top line, which is mildly positive, but the steep rise in receivables and large negative operating cash flow raise concerns about working capital and cash quality. Investors should watch the very small scale of operations (sub-Rs.10 crore consolidated revenue) and the dependence on the US subsidiary Libertycom LLC for most of the revenue.