Hyderabad, January 30, 2025 – Madhucon Projects Limited (BSE: 531497, NSE: MADHUCON) has reported a net loss of ₹295.60 lakh in its standalone unaudited financial results for the quarter ended December 31, 2024. The infrastructure and construction company continues to struggle with mounting financial challenges, including debt defaults and ongoing legal proceedings.
Key Financial Highlights (Standalone)
(Figures in ₹ Lakh unless stated otherwise)| Particulars | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | FY2024 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 9,010.59 | 16,280.56 | 25,895.44 | 46,266.19 | 68,259.75 | 95,124.33 |
| Other Income | 3,522.67 | 20,407.59 | 17.81 | 26,465.28 | 1,870.80 | 25,442.41 |
| Total Income | 12,533.27 | 36,688.16 | 25,913.25 | 72,731.47 | 70,130.55 | 1,20,566.74 |
| Total Expenses | 12,941.87 | 37,564.84 | 26,359.53 | 74,148.17 | 71,292.80 | 1,22,597.19 |
| Net Profit/(Loss) | (295.60) | (240.13) | (233.84) | (1,047.85) | (756.82) | (1,026.94) |
| Earnings Per Share (EPS) | (0.40) | (0.33) | (0.32) | (1.42) | (1.03) | (1.39) |
Consolidated Performance
Madhucon Projects’ consolidated loss widened to ₹44,616.01 lakh in Q3 FY2025, compared to a loss of ₹1,435.27 lakh in the corresponding quarter last year. The sharp increase in losses was driven by higher expenses and impairments recorded in its subsidiaries.| Particulars | Q3 FY2025 | Q2 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 | FY2024 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 11,143.62 | 18,994.61 | 27,564.59 | 53,778.13 | 74,280.70 | 1,16,375.27 |
| Total Expenses | 62,544.53 | 40,625.93 | 29,296.50 | 1,30,081.25 | 86,548.06 | 1,53,601.50 |
| Net Profit/(Loss) | (44,616.01) | (515.55) | (1,435.27) | (46,179.02) | (5,379.72) | (6,074.90) |
| Earnings Per Share (EPS) | (57.22) | (0.61) | (1.69) | (59.13) | (6.76) | (6.11) |
Key Financial Challenges
- Debt Defaults & NPA Classification
- The company has defaulted on repayments to banks amounting to ₹10,901.25 lakh.
- Loans classified as Non-Performing Assets (NPA), with outstanding dues under One-Time Settlement (OTS) agreements.
- Impairment of Investments
- Madhucon Infra Limited, its subsidiary, recorded impairment provisions worth ₹30,550.68 lakh, reflecting deteriorating financial health.
- Pending Legal & Regulatory Matters
- CBI & Enforcement Directorate Investigation: The company’s subsidiary, Ranchi Expressways Ltd, is under investigation for alleged corruption and financial mismanagement.
- Insolvency Proceedings: Subsidiaries including Ranchi Expressways Ltd, Trichy-Thanjavur Expressways Ltd, and Barasat-Krishnagar Expressways Ltd are undergoing insolvency resolution under the NCLT.
- Operational & Cash Flow Challenges
- Delays in project execution and collections from National Highways Authority of India (NHAI).
- Reconciliation of GST credits pending, affecting working capital cycles.
Management Commentary
Mohammad Shafi, Joint Managing Director, Madhucon Projects Ltd, stated:"The infrastructure sector remains challenging due to regulatory delays and financing constraints. We are working towards debt restructuring and resolution of insolvency cases to stabilize operations."
K. Venkateswarlu, Director & CFO, added:
"We acknowledge the financial stress, and our focus remains on cash flow optimization, asset monetization, and project completion to restore profitability."
Strategic Outlook
- Debt Restructuring & OTS Finalization: Negotiations with lenders to settle outstanding debts.
- Legal Resolutions: Addressing insolvency cases and regulatory scrutiny to regain investor confidence.
- Project Execution & Revenue Growth: Focus on completing stalled projects and securing new contracts.