Outcome of Board Meeting to be held on today for 1. Approval of Audited Financial Results for the Half year and year ended on 31.03.2025 2. Allotment of Equity shares in lieu of conversion ....
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Novateor Research Laboratories' board, meeting on May 30, 2025, approved its audited financial results for the half year and full year ended March 31, 2025. Revenue from operations jumped to Rs. 277.73 lakhs from Rs. 120.70 lakhs in FY24, an over 130% rise, while net profit climbed to Rs. 8.18 lakhs from Rs. 2.93 lakhs, roughly a 180% increase. EPS improved to Rs. 0.17 from Rs. 0.06. The auditor, however, issued a qualified opinion flagging four deviations: non-compliance with AS-2 (inventory valuation), AS-15 (gratuity provision), AS-17 (segment reporting), and amortisation of IPO expenses instead of writing them off against securities premium. Additionally, 12,18,000 warrants were converted into equity shares at Rs. 28 each (Rs. 10 face value + Rs. 18 premium), raising about Rs. 3.41 crore and increasing the paid-up equity capital from 48,34,170 shares to 60,52,170 shares, a 25% expansion of the share base.
For shareholders, the strong topline and bottomline growth is positive, but the qualified audit opinion and continuing negative operating cash flow (Rs. -93.69 lakhs in FY25) raise concerns about earnings quality and cash generation. The warrant conversion is a 25% dilution to existing shareholders, though the company received fresh capital of about Rs. 3.41 crore from promoters and other allottees.