FINANCIAL RESULTS - 31.03.2025
Awaiting price reaction for this filing.
The Board of Victoria Enterprises approved its audited financial results for FY ending March 31, 2025 on May 30, 2025. The company reported a profit before tax of Rs. 1,596.45 lakhs for FY25, a sharp jump from Rs. 61.30 lakhs in FY24, though total revenue remains small (other income of Rs. 5.75 lakhs vs Rs. 5.52 lakhs prior year). The statutory auditor, M/s Mahesh Chandra & Associates, issued a qualified opinion flagging that the company has not obtained an actuarial valuation for gratuity liability as required under Ind AS 19 and is provisioning based on management estimates — auditors could not confirm adequacy of this provision. Operating cash flow remained negative at Rs. (760.54) lakhs for FY25 (vs Rs. (1,083.76) lakhs in FY24). The company also disclosed that 5% Non-Cumulative Redeemable Preference Shares have been overdue for refund since March 31, 2020 and remain under negotiation for restructuring.
The qualified audit opinion and the 5-year overdue status of redeemable preference shares are clear red flags for shareholders, even though headline profit shows a sharp jump. Negative operating cash flows in both years raise questions about the sustainability and quality of earnings.