In pursuance to the communication received from the Stock exchange, submitting the revised Audit report on the financial statements for the financial year ended 31 March 2025
ROSSTECH · price
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Rossell Techsys's board approved audited standalone and consolidated financials for FY ended March 31, 2025, with auditors Raghavan, Chaudhuri & Narayanan issuing an unmodified (clean) opinion. Consolidated revenue grew to ₹25,967 lakhs from ₹21,696 lakhs (~20% YoY), but profit after tax fell to ₹781 lakhs from ₹1,218 lakhs (~36% decline) as employee costs surged ~45% to ₹5,804 lakhs, squeezing PBT margin from 6.5% to 4.3%. Operating cash flow swung sharply negative to -₹4,218 lakhs (FY25) from +₹2,388 lakhs (FY24) due to a big build-up in receivables and inventory. The board recommended a ₹0.2/share (10%) final dividend and appointed Mr. Krishnappayya Desai as Company Secretary. The auditor flagged in 'Other Matters' that comparative FY24 figures are restated (for the company's DRHP/IM), the US subsidiary's results are unaudited, and registrations/loan facilities from the demerged Rossell India entity are still being formally transferred.
Top-line growth is healthy, but sharply higher employee costs crushed profitability and turned operating cash flow negative — a quality-of-earnings red flag. The pending transfer of demerged entity's registrations and the unaudited US subsidiary are governance items to watch. The small 10% dividend and weak cash conversion are mild negatives for shareholders.