Hubtown Limited has submitted to the Exchange, outcome and the financial results for the period ended March 31, 2025.
HUBTOWN · price
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Awaiting price reaction for this filing.
Hubtown Limited reported standalone total income of Rs. 38,719 lakhs for FY25, up from Rs. 23,716 lakhs in FY24. Net profit jumped to Rs. 7,631 lakhs (FY24: Rs. 616 lakhs), with EPS of Rs. 7.19 (FY24: Rs. 0.80). However, the auditor issued a qualified/modified opinion for the seventh consecutive year, flagging that the company has not provided for Rs. 7,381.14 lakhs of interest on inter-corporate deposits, which inflated profit. Adjusted net profit would be Rs. 4,398.59 lakhs and EPS just Rs. 0.23. A large Rs. 4,219.43 lakhs gain from a one-time settlement with lenders boosted other income. The board also approved re-appointment of Independent Director Kartik Ruparel, new internal and cost auditors, and an EGM covering borrowing powers, related party transactions, and cancellation of 1.59 lakh unsubscribed shares. Promoter group received 62.5 lakh shares via warrant conversion at Rs. 220 each (Rs. 210 premium).
Reported earnings look strong but the repeat qualified audit opinion and undisclosed interest liabilities of Rs. 73+ crore on inter-corporate deposits remain a serious red flag for shareholders. The huge one-time settlement gain flatters the results; core profitability is far weaker than headline numbers suggest. Investors should weigh the governance risk carefully before taking the profit jump at face value.