DHARAN INFRA-EPC LIMITED — Important, 28-12-2024: Financial Result Updates

**Consolidated Financial Results Summary**

For the quarter ended September 30, 2024, KBC Global reported a total revenue of ₹1,553.01 crore, reflecting a decline compared to ₹2,067.20 crore in the previous quarter. The decrease was driven mainly by a significant drop of around 46% in the revenue from their Real Estate segment, which fell to ₹619.53 crore from ₹933.48 crore. Meanwhile, the Civil Contracting division remained steady, contributing ₹9.97 crore.

The net loss after tax expanded to ₹1,583.09 crore compared to a loss of ₹1,539.17 crore in the previous quarter, marking a continuous decline in profitability. This trend is indicative of escalating operational challenges, particularly in project execution and delays in converting contracts into revenue.

Operational costs surged, with significant increases in finance costs, which reached ₹467.25 crore, exacerbating the pressure on margins. The firm’s efforts to improve cost efficiency seem ineffective at present, given the rise in total expenses to ₹3,426.46 crore from ₹1,181.54 crore.

The balance sheet indicates ongoing stress, with total assets at ₹1,06,974.80 crore against liabilities of ₹17,982.38 crore, reflecting a precarious financial position. The company has also not been able to repay borrowings, signaling cash flow issues.

Looking ahead, the outlook remains cautious as the management aims to restore operational efficiency amidst significant losses and ongoing regulatory scrutiny. Given these factors, a hold position is advisable while monitoring for potential recovery strategies.