Outcome of Board Meeting held on 29.05.2025
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Sarthak Industries' Board approved its audited standalone financial results for Q4 and full year ended March 31, 2025, with an unmodified auditor's opinion from Ashok Khasgiwala & Co. LLP. Total revenue surged dramatically to Rs. 206.10 crore in FY25 from Rs. 33.93 crore in FY24 (about 6x growth), driven mainly by the trading business (Rs. 181.61 crore vs Rs. 16.22 crore last year). Net profit jumped to Rs. 2.83 crore from Rs. 0.68 crore (about 4x growth), with EPS rising to Rs. 3.04 from Rs. 0.73. However, operating cash flow worsened sharply to negative Rs. 14.85 crore versus negative Rs. 2.02 crore last year, mainly due to a surge in inventories and trade receivables. Total assets stood at Rs. 72.91 crore with total equity of Rs. 42.17 crore.
Strong top-line and profit growth signals a major business expansion, likely from scaling the trading segment, which should be positive for shareholders. However, the steep negative operating cash flow and rising working capital needs warrant close monitoring as they suggest cash is tied up in inventory and receivables rather than being collected efficiently.