Quarter profit rises, but auditor flags billing and control risks
OMINFRAL · price
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On the reaction day the stock moved 1.3 pts less than Nifty Microcap 250 and 1.1 pts less than its Civil Construction peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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For the September quarter, consolidated revenue was Rs 123.79 crore and net profit Rs 7.01 crore, up from Rs 3.93 crore. Half year revenue fell to Rs 228.14 crore from Rs 240.79 crore, while profit fell to Rs 6.02 crore from Rs 16.46 crore. Operating cash flow was negative Rs 40.76 crore. The auditor raised concerns about unavailable Nepal branch records, weak financial controls and Rs 41.50 crore of unbilled revenue lacking approval.
Quarter profit growth may support sentiment, but lower sales, operating cash outflow and auditor concerns may weigh on the stock.