Audited Financial Results for the half year and year ended on 31.03.2025
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Novateor Research Laboratories reported FY25 revenue from operations of Rs. 277.73 Lakhs, more than doubling from Rs. 120.70 Lakhs in FY24, a jump of around 130%. Profit after tax rose to Rs. 8.18 Lakhs from Rs. 5.18 Lakhs the previous year. However, the auditor issued a qualified opinion flagging multiple issues — non-compliance with AS-2 (inventory valuation), AS-15 (no gratuity provision), AS-17 (no segment reporting), and amortisation of IPO expenses instead of writing them off against securities premium. The auditor also drew attention via an emphasis of matter on the revaluation of long-lease land worth Rs. 100 Lakhs. Operating cash flow remained deeply negative at Rs. (93.69) Lakhs, similar to the prior year. Separately, the company allotted 12,18,000 equity shares on conversion of warrants at Rs. 28 each, raising paid-up capital from Rs. 4.83 crore to Rs. 6.05 crore, with promoter and promoter group allottees receiving a chunk of these shares.
Sharp revenue and profit growth is a positive, but the qualified auditor opinion and continued negative operating cash flow raise concerns about earnings quality and the company's ability to convert profits into cash. The warrant conversion has diluted existing shareholders — the promoter's stake dropped from 29.56% to 24.80%.