Submission of Audited Financial Results for the year ended 31st March, 2025.
Awaiting price reaction for this filing.
Sunshine Capital, an NBFC, reported a sharp fall in total income to Rs 892.58 lakhs in FY25 from Rs 7,422.01 lakhs in FY24, largely because share-trading revenue vanished. Net loss for the year was Rs 68.41 lakhs versus a Rs 4,721.32 lakhs loss last year (last year's loss was inflated by one-time exceptional items of Rs 4,810 lakhs). For Q4 alone, the company posted a loss of Rs 787 lakhs, with interest income turning negative at Rs -251.82 lakhs. A major restructuring took place: Rs 67,000 lakhs of unsecured loans from corporate lenders were converted into equity and lenders waived the accrued interest. Cash from operations stayed negative at Rs -324.75 lakhs. The auditor (VRSK & Associates) gave an unmodified opinion but flagged non-compliance with Ind AS 109 on expected credit loss provisioning, some cash-basis expenses, lack of audit trail in accounting software, and a mid-year statutory auditor change that was never ratified at an EGM.
Continued losses and deeply negative core interest income signal ongoing stress in the lending business, while the share-trading revenue that propped up FY24 has disappeared. The Rs 67,000 lakh debt-to-equity conversion clears liabilities off the books but also means massive equity dilution for existing shareholders; negative operating cash flow raises questions about liquidity despite the auditor's going-concern reassurance.