RESULTS - FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2025
Awaiting price reaction for this filing.
Aban Offshore reported a sharp turnaround in FY25 with net profit of Rs. 1,678.20 million versus a loss of Rs. 2,829.79 million in FY24. Total income surged to Rs. 3,095.46 million from Rs. 1,004.20 million, while income from operations grew about 38% to Rs. 1,245.49 million. The PAT swing was largely driven by one-time items, including an excess provision write-back of Rs. 1,554.15 million and a foreign exchange gain of Rs. 404.57 million, rather than core operations. No dividend has been recommended. The standalone auditor (Ford Rhodes Parks & Co. LLP) issued a qualified opinion due to non-receipt of bank balance confirmations covering deposits of Rs. 114.58 million and term loans of Rs. 4,012.88 million, while the consolidated auditor issued a disclaimer of opinion. The auditor also flagged material uncertainty on going concern given accumulated losses of Rs. 32,168.34 million, negative net worth, current liabilities exceeding current assets by Rs. 12,341.62 million, and defaults on loan and preference share repayments.
Despite the headline return to profit, the company's financial health remains deeply distressed with negative net worth, breached loan covenants, and unresolved defaults on Rs. 2,810 million of preference shares and term loans. The turnaround relies heavily on non-recurring write-backs, and the going concern qualification signals significant risk for shareholders; the stock price is likely to remain volatile pending outcomes of debt resolution talks with lenders.