Financial results are enclosed
Awaiting price reaction for this filing.
Hindustan Fluorocarbons Limited (HFL), a PSU whose factory closure was approved by the Government in January 2020, announced its audited results for FY25. Total income was Rs 212.15 lakhs (vs Rs 208.21 lakhs in FY24). Profit from discontinued operations fell sharply to Rs 42.17 lakhs from Rs 122.72 lakhs in the previous year. The company's other equity remains deeply negative at Rs (10,188.60) lakhs and total equity is negative at Rs (8,227.14) lakhs. The statutory auditor (AVRSK & Associates) issued an unmodified opinion but flagged a 'Material Uncertainty Related to Going Concern,' explicitly stating the company is no longer a going concern following the cabinet-approved closure. Operating cash flow was negative at Rs (318.88) lakhs. The company also appointed K S Ramakrishna & Co as internal auditors for FY26 at a fee of Rs 30,508 per annum.
This is a significant negative development for shareholders — the auditor has formally declared HFL is no longer a going concern, meaning its long-term viability is in serious doubt as it winds down operations. With negative net worth of over Rs 82 crore, non-current borrowings of Rs 123 crore, and persistent negative operating cash flows, the stock carries high risk. Investors should expect limited prospects for value recovery and should monitor the closure completion timeline closely.