i. Audited Financial Results of the Company for the 4th Quarter and Financial Year ended March 31, 2025; ii. Withdrawal / Cancellation of Rights Issue; iii. Disinvestment by way of sale ....
Awaiting price reaction for this filing.
The board approved audited financial results for Q4 and FY ended March 31, 2025. On a standalone basis, revenue from operations fell to ₹18.76 crore (FY24: ₹20.60 crore) and the company posted a loss after tax of ₹9.19 crore, widening from a ₹7.03 crore loss a year earlier. Net worth on a standalone basis is fully eroded, with auditors flagging a material uncertainty on going concern. Consolidated results were weaker, with revenue of ₹67.99 crore and a loss after tax of ₹36.39 crore, and the consolidated auditor issued a qualified (modified) opinion. The board cancelled the ₹160 crore rights issue that was approved in May 2024, citing weak capital market conditions, global economic instability, and recent SEBI changes to the rights issue framework. The company will reassess capital needs internally and may revisit the issue later. The board also approved the sale of its 100% stake in wholly-owned subsidiary Ishaan Solar Power Private Limited (along with step-down subsidiary SEI Tejas) for ₹3.93 crore in cash to Mr. Pashupathy Shankar Gopalan, who is connected to a promoter entity of the company. Ishaan contributed only ~2% of revenue and the subsidiaries' business is outside the company's core segment. The 'SUNEDISON' trademark was assigned to SILRES Energy Solutions for ₹1 crore.
Shareholders should note three negatives: (1) the rights issue is scrapped, removing a planned capital infusion at a time when net worth is fully eroded; (2) losses are widening on both standalone and consolidated bases with a going-concern flag from auditors; and (3) the sale to a promoter-related buyer of a loss-making subsidiary may raise governance questions, though the company says the financial impact on consolidated results is not material.