Mumbai, January 30, 2025—Kedia Construction Co. Ltd. (BSE: 508993) has released its unaudited financial results for the December 31, 2024 quarter. The company reported a subdued performance, notable losses, and ongoing legal and corporate restructuring developments.
Financial Highlights (₹ in Lakhs)
| Particulars | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | FY2024 |
|---|---|---|---|---|---|---|
| Net Sales/Income from Operations | 3.75 | 4.75 | 3.75 | 14.50 | 12.50 | 16.25 |
| Other Income | 0.00 | 0.05 | 0.26 | 0.10 | 1.26 | 1.35 |
| Total Income | 3.75 | 4.80 | 4.01 | 14.60 | 13.76 | 17.60 |
| Total Expenditure | 12.64 | 19.63 | 8.79 | 46.11 | 41.63 | 49.54 |
| Net Profit/Loss (PAT) | (0.83) | (3.30) | (0.32) | (2.64) | (32.68) | (32.28) |
| Earnings Per Share (EPS) | (₹0.028) | (₹0.110) | (₹0.011) | (₹0.088) | (₹1.089) | (₹1.076) |
Key Observations
- Declining Revenue: The company’s total income for Q3 FY2025 stood at ₹3.75 lakh, marking a decline from ₹4.80 lakh in Q2 FY2025. However, YoY revenue remained flat compared to ₹3.75 lakh in Q3 FY2024.
- Losses Continue: Net loss widened to ₹0.83 lakh in Q3 FY2025, though it showed improvement compared to ₹3.30 lakh in the previous quarter. However, for the nine months, losses stood at ₹2.64 lakh.
- Rising Expenses: The company's expenditure remained high at ₹12.64 lakh, resulting in a negative bottom line.
Regulatory & Corporate Announcements
Litigation with LIC of India
- The company is engaged in an ongoing legal dispute with the Life Insurance Corporation (LIC) of India concerning a property on Ridge Road. The asset is currently valued at ₹45.88 lakh under inventory. No provision for diminution in value has been made since the case remains sub judice.
Amalgamation with Kirti Investments Limited
- The Board of Directors approved a Scheme of Arrangement and Amalgamation between Kedia Construction Co. Ltd. and Kirti Investments Limited.
- The appointed date for the scheme is April 1, 2024.
- The merger is subject to approval from shareholders, regulatory bodies, and the National Company Law Tribunal (NCLT), Mumbai.
Auditor’s Observations
- Jhunjhunwala Jain & Associates LLP conducted a limited review of the financial statements.
- The review highlighted no material misstatements and affirms that the results were prepared according to Indian Accounting Standards (Ind AS 34).
- However, emphasis was placed on the ongoing litigation and the pending merger, which could have significant financial implications.
Outlook
Despite ongoing losses, the company's strategic merger with Kirti Investments Ltd. could lead to financial restructuring and growth. However, challenges persist, particularly concerning its legal battle with the LIC of India, which may impact future valuations.Investors should closely monitor regulatory developments regarding the NCLT approval for amalgamation and the Ridge Road property dispute resolution.