Outcome of Board Meeting held on May 28, 2025
Awaiting price reaction for this filing.
The Board of Fedders Electric approved its audited standalone financial results for Q4 and FY25, with statutory auditors M/s O. Aggarwal & Co. issuing a Qualified Opinion containing seven specific qualifications. Revenue from operations rose about 15.7% to Rs 525.30 crore (from Rs 454 crore last year), but profit before tax fell sharply to Rs 37.68 crore from Rs 87.08 crore, dragging EPS down to Rs 12.95 from Rs 29.52. Auditor flags include non-compliance with the 25% public shareholding norm, Rs 47.65 lakh pending transfer to IEPF, no proper fixed asset register, missing CSR spend of Rs 76.32 lakh, and preference shares issued without proper Ind AS 109 valuation. Cash from operations remained negative, and bank guarantee-related contingent liabilities jumped from Rs 0.52 crore to Rs 12.58 crore. Share trading is suspended on both BSE and NSE, and the company has filed for delisting from both exchanges, pending NCLT approval.
The qualified audit opinion, steep fall in profits, negative operating cash flow, rising contingent liabilities and suspended trading point to significant operational and governance weaknesses. Shareholders face very limited liquidity now and the company is actively pursuing delisting, which would eventually remove any exit avenue for minority investors.