Standalone and Consolidated Financial Results of the Company for the quarter and year ended March 31, 2025
Awaiting price reaction for this filing.
Konark Synthetic Limited reported FY25 revenue from operations of ₹4,673.56 lakhs, up about 7% from ₹4,360.44 lakhs in FY24. Despite the revenue growth, the company swung to a sharp standalone loss — PAT of ₹(308.28) lakhs versus a profit of ₹12.78 lakhs a year ago — with basic EPS at ₹(5.31). Q4 FY25 revenue jumped to ₹1,604.35 lakhs (vs ₹797.54 lakhs in Q4 FY24), but the quarter also posted a loss of ₹(321.39) lakhs. The results include exceptional items of ₹(203.51) lakhs arising from the transfer of an associate concern. Operating cash flow remained positive at ₹173.05 lakhs, though standalone Other Equity turned negative at ₹(578.78) lakhs. The auditor issued an unmodified opinion but flagged serious concerns via Emphasis of Matter: doubtful trade receivables (₹533.39 lakhs net, plus ₹93.47 lakhs from Shubhlakshnu Polyester with no provision), corporate guarantees of ₹7,306 lakhs to its subsidiary India Denim Limited and erstwhile associate Konark Gujarat PV Private Limited — amounts the auditor explicitly notes are 'much higher than the total net worth of the company' — and India Denim being under NCLT Corporate Insolvency Resolution Process with loans classified as NPA.
Strong revenue growth masks a deep swing into losses and a fragile balance sheet: contingent liabilities from corporate guarantees dwarf the company's net worth, and its key subsidiary is in insolvency proceedings — raising serious going-concern and shareholder-value risks despite a clean audit opinion.