The Board of Directors of the Company in its meeting held on today i.e. 27th Day of May, 2025 considered and approved the Audited Financial Results for 04th Quarter and Year Ended March ....
Awaiting price reaction for this filing.
Rainbow Denim's board approved audited results for Q4 and full year ended March 31, 2025. Full-year revenue from operations jumped to Rs. 16,431.47 lakh from Rs. 1,492.29 lakh last year, while net profit surged to Rs. 1,395.23 lakh from Rs. 235.86 lakh. Q4 revenue stood at Rs. 6,646.88 lakh with a net profit of Rs. 908.01 lakh, and EPS for the year was Rs. 10.50 versus Rs. 1.78. The auditor issued an unqualified opinion but flagged an Emphasis of Matter noting that books of accounts from the previous liquidator (pre-NCLT management, takeover date 21-09-2023) were never received, so prior-year comparatives rely on FY23 audited numbers. Despite strong reported profits, operating cash flow was negative at Rs. (1,785.52) lakh, and total borrowings rose to Rs. 11,563.75 lakh against equity of Rs. 3,761.56 lakh (debt-equity roughly 3x).
Headline numbers look impressive, but the year-on-year comparison is skewed because FY24 only captured a few months under the new management post-NCLT revival, so the growth is partly a base effect. Shareholders should watch the negative operating cash flow and very high leverage, which are real concerns despite the unqualified audit opinion. Short-term stock reaction may be muted until investors assess working capital and debt sustainability.