Kanpur, January 31, 2025 – EMA India Limited (BSE: 522027) has announced its unaudited financial results for the quarter and nine months ended December 31, 2024, following its Board of Directors' meeting held today. The company also disclosed a plan to sell or transfer its industrial premises in Kanpur.
Financial Performance Overview
Key Highlights (₹ in Lakhs)
| Particulars | Q3 FY25 (31-Dec-24) | Q2 FY25 (30-Sep-24) | Q3 FY24 (31-Dec-23) | 9M FY25 (31-Dec-24) | 9M FY24 (31-Dec-23) |
|---|---|---|---|---|---|
| Total Income | 0.00 | 0.04 | 0.00 | 0.04 | 0.06 |
| Employee Benefits Expense | 5.49 | 5.60 | 5.63 | 17.33 | 16.94 |
| Depreciation & Amortization | 1.47 | 1.47 | 1.49 | 4.41 | 4.47 |
| Other Expenses | 4.67 | 3.83 | 4.56 | 15.33 | 14.82 |
| Total Expenses | 15.97 | 10.90 | 11.68 | 41.41 | 36.23 |
| Net Profit / (Loss) | (15.97) | (10.86) | (13.89) | (41.37) | (38.38) |
| EPS (Basic & Diluted, ₹) | (1.59) | (1.08) | (1.38) | (4.12) | (3.82) |
Strategic Decision: Proposed Land Sale in Kanpur
The Board has approved a proposal to sell or transfer its industrial premises at C-37, Panki Industrial Area, Kanpur. The sale is subject to shareholder approval through a special resolution and compliance with SEBI’s Listing Regulations.Transaction Details:
- Expected Completion: 9 months
- Minimum Consideration: ₹7.05 crore (as per independent valuation)
- Buyer Details: Yet to be finalized, but will not include promoters or related parties.
Regulatory Filings & Other Updates
- Limited Review by Statutory Auditors: The financial results have been reviewed by B.C. Jain & Co., which did not express any audit concerns but emphasized that EMA India Ltd. has ceased to be a going concern, leading to asset impairment adjustments.
- Regulation 32(1) Compliance: The company confirmed that no funds were raised through public, rights, or preferential issues in Q3 FY25.
Outlook & Challenges
EMA India Ltd. is facing continued financial distress, with negative net worth and ongoing losses. The company has been exploring potential new business opportunities, but discussions with major industry players have not yielded favorable results so far. The decision to sell its Kanpur property indicates a strategy to restructure operations or liquidate non-core assets.Conclusion
EMA India Ltd.’s financial performance for Q3 FY25 highlights its ongoing struggles with revenue generation and profitability. The upcoming land sale, if executed successfully, could provide some financial relief. However, long-term sustainability remains uncertain, as indicated by its auditor’s assessment regarding the company’s viability.Stockholders and potential investors should closely monitor developments regarding the land sale and any strategic shifts in EMA India’s business model.