Standalone and Consolidated Financials Show Losses Amid Legal Uncertainties
Ahmedabad, January 30, 2025 – N K Industries Limited has released its unaudited standalone and consolidated financial results for the quarter ending December 31, 2024. The company reported continued losses amid ongoing legal challenges and regulatory scrutiny.
Key Financial Highlights (Standalone)
| Particulars | Q3 FY25 (₹ in Lakhs) | Q2 FY25 (₹ in Lakhs) | Q3 FY24 (₹ in Lakhs) |
|---|
| Net Sales/Income from Operations | 60.00 | 60.00 | 60.00 |
| Other Income | 11.17 | 9.00 | 9.55 |
| Total Income | 71.17 | 69.00 | 69.55 |
| Total Expenses | 86.83 | 102.36 | 114.94 |
| Profit/(Loss) Before Tax | (18.96) | (32.87) | (18.58) |
| Earnings Per Share (Basic & Diluted) | (₹0.24) | (₹0.47) | (₹0.34) |
The company reported a net loss of ₹18.96 lakh for the quarter, widening from ₹18.58 lakh in Q3 FY24 but narrowing from ₹32.87 lakh in Q2 FY25.
Key Financial Highlights (Consolidated)
| Particulars | Q3 FY25 (₹ in Lakhs) | Q2 FY25 (₹ in Lakhs) | Q3 FY24 (₹ in Lakhs) |
|---|
| Net Sales/Income from Operations | 373.84 | 390.80 | 439.11 |
| Other Operating Income | 11.54 | 8.80 | 8.30 |
| Total Income | 385.38 | 399.59 | 444.53 |
| Total Expenses | 436.17 | 469.47 | 486.94 |
| Profit/(Loss) Before Tax | (50.79) | (69.87) | (42.41) |
| Earnings Per Share (Basic & Diluted) | (₹0.71) | (₹0.92) | (₹0.67) |
The consolidated net loss stood at ₹50.79 lakh, higher than ₹42.41 lakh in Q3 FY24 but slightly better than the ₹69.87 lakh loss in Q2 FY25.
Regulatory & Legal Issues
- Pending Litigation: The company has ongoing legal proceedings related to historical trading transactions, leading to financial uncertainties.
- Money Laundering Allegations: Regulatory authorities have initiated proceedings, including asset attachments, under applicable laws. Legal matters remain under review.
- Criminal Proceedings: Additional regulatory actions have been initiated, and legal cases are pending in various courts.
Auditor's Observations & Going Concern Status
- Accumulated losses of ₹34,932.24 lakh (Standalone) and ₹35,113.35 lakh (Consolidated) have resulted in a negative net worth.
- Management asserts confidence in business revival with cash flow projections, but material uncertainties remain.
- No provision for impairment has been made as the company is operating on a going concern basis.
Management Commentary
Hasmukhbhai Kacharabhai Patel, Whole Time Director, stated:
“The company is actively engaging in legal proceedings to resolve pending issues. Our team remains focused on stabilizing operations and ensuring financial sustainability in the long run.”
Strategic Outlook
- The company is exploring revival strategies to recover financial stability.
- Efforts are being made to address ongoing legal challenges.
- Investor sentiment remains cautious due to financial losses and legal proceedings.
Conclusion
N K Industries continues to navigate financial stress and regulatory headwinds. While management maintains a positive outlook on business revival, uncertainties persist.
Investors are advised to monitor further updates on financial restructuring efforts and operational performance before making investment decisions.