Audited Financial Results for the quarter ended 31st March 2025
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Awaiting price reaction for this filing.
Velan Hotels reported audited results for FY25 showing near-zero revenue of just Rs. 0.18 lakhs, as all hotel operations have been suspended since March 2020 following COVID-19. The company posted a massive net loss of Rs. 1,280.67 lakhs for the full year (vs. a loss of Rs. 109.26 lakhs in FY24), driven largely by finance costs of Rs. 1,138.02 lakhs. Net worth has turned deeply negative at Rs. (735.66) lakhs, with reserves at Rs. (4,489.47) lakhs. The auditor (Krishaan & Co.) issued a qualified opinion, flagging a material uncertainty on the company's ability to continue as a going concern — the company is now dependent on asset sales to repay its Rs. 97.32 crore one-time settlement debt with RARE ARC, of which Rs. 60.23 crore was paid by FY24 and a further Rs. 22.29 crore during FY25 from funds infused by directors and associates. Operating cash flow was also negative at Rs. (74.34) lakhs, and statutory dues (GST, VAT, service tax) remain significantly overdue.
This is a deeply distressed filing — shareholders face a company with no operations, eroded net worth, qualified audit opinion, and going concern uncertainty. Any value recovery depends entirely on the company successfully selling its remaining hotel assets to settle the ARC debt; without this, the equity could be effectively wiped out. The stock is high-risk and likely illiquid.