Statement of Deviation
Awaiting price reaction for this filing.
Quasar India Limited submitted its audited financial results for Q4 and FY25 along with a statement on use of Rights Issue proceeds (₹48.15 crore raised on 22-Jan-2025), with no deviation reported — funds were used for working capital (₹3,662.86 lakhs utilised out of ₹3,694 lakhs planned) and general corporate purposes (₹1,152.68 lakhs out of ₹1,162.48 lakhs). Full-year revenue from operations grew about 15.6% to ₹4,213.35 lakhs (vs ₹3,645.74 lakhs in FY24), but profitability collapsed sharply with FY25 PAT crashing to just ₹2.45 lakhs from ₹165.85 lakhs. Q4 FY25 alone swung to a loss of ₹302.98 lakhs at the PAT level, with a pre-tax loss of ₹424.07 lakhs as expenses of ₹1,616.60 lakhs far outpaced revenue of ₹1,192.52 lakhs. Operating cash flow was deeply negative at ₹-4,813.92 lakhs for the year (vs ₹27.05 lakhs in FY24), largely reflecting a ₹2,145.64 lakhs build-up in inventory and a ₹2,852.67 lakhs increase in other current assets. The statutory auditor (J. Singh & Associates) issued an unmodified opinion, and no dividend was recommended for FY25.
Despite higher annual revenue, shareholders should note a dramatic collapse in profitability (PAT down ~98.5% YoY), a sharp Q4 loss, and a large negative operating cash flow — the Rights Issue funds have propped up the balance sheet but core trading operations appear to have lost margin in Q4. The clean audit opinion is a positive, but weak earnings and cash burn could weigh on the stock.