Rajkot, February 4, 2025
Shree Ram Proteins Limited (NSE: SRPL, ISIN: INE008Z01012) announced its
unaudited standalone financial results for the
quarter and nine months ended December 31, 2024, reporting a
net loss of ₹465.56 lakh for Q3 FY25, highlighting ongoing financial distress.
Key Financial Highlights (₹ in lakh)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|
| Revenue from Operations | 2.53 | 250.47 | 251.00 | 251.00 | 1,450.72 | 1,310.19 |
| Total Expenses | 1,410.07 | 476.13 | 1,920.08 | 2,172.24 | 2,522.27 | — |
| Profit/(Loss) Before Tax | (465.67) | (1,159.60) | (476.13) | (1,667.08) | (662.72) | (1,011.38) |
| Net Profit/(Loss) | (465.56) | (1,159.53) | (457.98) | (1,675.24) | (626.81) | (958.21) |
| Earnings Per Share (EPS) (₹) | (0.21) | (0.54) | (0.21) | (0.78) | (0.29) | (0.45) |
The company’s
total revenue dropped sharply compared to previous quarters, reflecting operational challenges and financial instability.
Audit Observations and Financial Concerns
The
Independent Auditor’s Review Report raised
significant concerns regarding Shree Ram Proteins' financial health:
- Going Concern Issues: The company is facing a severe liquidity crunch, affecting its ability to continue operations.
- Loan and Statutory Defaults: The company has defaulted on loan repayments and statutory dues.
- Corporate Insolvency Proceedings: Proceedings under the Insolvency and Bankruptcy Code (IBC), 2016, were initiated but have since been stayed by the National Company Law Appellate Tribunal (NCLAT) upon settlement.
- Lack of Financial Controls: Auditors noted the absence of inventory and asset verification, impairment assessment, and balance confirmations, making financial reporting less reliable.
Management Commentary & Future Outlook
Chairman and Managing Director
Lalitkumar Chandulal Vasoya acknowledged the company's financial struggles and stated:
"We are actively exploring avenues to stabilize operations and improve liquidity. Settlement of insolvency proceedings is a positive step forward."
Despite these efforts, Shree Ram Proteins remains
highly vulnerable to financial and operational risks, with an uncertain path to recovery.
Investor Takeaway
Shree Ram Proteins faces
critical financial headwinds, with
significant losses, defaults, and audit concerns. While management is working on recovery, investors should remain cautious as the company navigates
severe liquidity constraints and regulatory scrutiny.