Outcome of Board Meeting held on 03.05.2025
Awaiting price reaction for this filing.
The board approved audited financial results for Q4 and FY ended 31 March 2025. Revenue from operations collapsed to Rs 794.62 lakhs in FY25 from Rs 5,585.93 lakhs in FY24, a decline of roughly 86%, after the company temporarily suspended manufacturing in August 2024 due to weak market conditions and high production costs. Net loss for the year widened sharply to Rs 2,705.91 lakhs (EPS Rs -40.57) versus Rs 1,093.17 lakhs loss last year, and total expenses of Rs 3,027.73 lakhs far exceeded total income. Other equity turned negative at Rs -1,047.42 lakhs, making total equity negative Rs 380.42 lakhs, meaning net worth is fully eroded. The auditor (SBSB and Associates) issued an unmodified opinion but added an Emphasis of Matter flagging continuous losses since FY23, fully eroded net worth, and reliance on Rs 1,927.71 lakhs of loans from group companies to stay afloat. Operating cash flow also turned negative at Rs -691.52 lakhs. The board also noted the resignation of Company Secretary Krish Narayanan effective 10 May 2025 and appointed Srikanth Ramani as his replacement, along with Swaminathan Nandhini as an Additional Director.
This is a deeply negative filing for shareholders. The company is loss-making, operations are halted, net worth is wiped out, and survival depends on continued funding from related-party group companies. The stock is likely to face significant pressure, and there is a real risk of dilution, restructuring, or further distress if group support is withdrawn.