Goa, India – January 30, 2025 – De Nora India Limited (NSE: DENORA EQ, BSE: 590031) has announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The company reported a net loss of ₹781.08 lakh for Q3 FY2025, compared to a profit of ₹647.78 lakh in the same quarter last year. The decline was mainly attributed to a significant increase in warranty provisions.
Key Financial Highlights (₹ in lakh)
| Particulars | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | FY2024 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from operations | 1,755.86 | 1,813.45 | 2,939.82 | 4,845.13 | 5,761.72 | 7,379.62 |
| Other income | 150.23 | 164.64 | 118.98 | 449.14 | 349.74 | 520.33 |
| Total income | 1,906.09 | 1,978.09 | 3,058.80 | 5,294.27 | 6,111.46 | 7,899.95 |
| Total expenses | 2,938.56 | 1,533.71 | 2,220.33 | 5,494.31 | 4,350.00 | 5,377.48 |
| Profit / (Loss) before tax | (1,032.47) | 444.38 | 838.47 | (200.04) | 1,761.46 | 2,522.47 |
| Net Profit / (Loss) | (781.08) | 328.12 | 647.78 | (164.78) | 1,334.94 | 1,900.74 |
| EPS (₹ per share) | (14.71) | 6.18 | 12.20 | (3.10) | 25.15 | 35.80 |
Financial Performance and Key Drivers
- Revenue Decline: The company's Q3 FY2025 revenue fell by 40.3% YoY to ₹1,755.86 lakh from ₹2,939.82 lakh in Q3 FY2024, reflecting reduced operational performance.
- Sharp Increase in Expenses: Warranty provisions saw a substantial rise to ₹1,061.35 lakh, compared to ₹28.70 lakh in Q3 FY2024, contributing to higher total expenses.
- Bottom-line Impact: As a result of increased costs, the company posted a pre-tax loss of ₹1,032.47 lakh and a net loss of ₹781.08 lakh, a stark contrast to the profit of ₹647.78 lakh in Q3 FY2024.
Management Commentary
Vinay Chopra, Managing Director, commented: "The quarter was significantly impacted by an unexpected increase in warranty provisions, which affected our profitability. However, we remain committed to operational efficiencies and strategic improvements to regain growth momentum."Outlook
- The company continues to focus on cost optimization and operational efficiency.
- Management aims to address warranty-related cost escalations and improve future margins.
- Further updates on financial recovery strategies are expected in upcoming quarters.
