Kesar Terminals & Infrastructure Ltd — Results, 14-05-2025: Result

Kesar Terminals & Infrastructure Limited has announced a board meeting to consider the financial results for the quarter and half-year ended March 31, 2025. The company approved its audited standalone and consolidated financials for the year ended March 31, 2025, and fixed the 17th Annual General Meeting for September 17, 2025. M/s. Dhrumil M. Shah & Co. LLP is proposed as the new Secretarial Auditor for five years, subject to shareholder approval.

Standalone net profit stood at ₹271.67 lakhs for the year, up from ₹69.42 lakhs the prior year. However, the auditor issued a qualified opinion mainly due to loans and investments in its wholly-owned subsidiary, Kesar Multimodal Logistics Ltd (KMLL), which is undergoing insolvency proceedings, defaulting on loans totaling ₹171.56 Cr for which Kesar is a corporate guarantor. No provision has been made for potential liabilities arising from invocation of this guarantee. The subsidiary is also expected to undergo divestment, with final impairment impacts yet unascertained.

Further, litigation with Deendayal Port Trust regarding leasehold land demands remains unresolved, with no provision for potential additional liabilities made given current uncertainty. The company continues to recognize related lease assets and depreciation based on existing lease terms.

Consolidated financials show a net loss of ₹5,168.42 lakhs for the year, reflecting the subsidiary’s losses and challenges. Finance costs remain elevated due to borrowings related to KMLL. The company maintains a going concern basis supported by expectations of business improvement, lender approvals, and the proposed subsidiary divestment.

Overall, Kesar’s core operations generate stable income, but significant uncertainty and risks persist due to the subsidiary’s financial distress, ongoing litigations, and unsettled provisions. Investors should monitor developments on the subsidiary’s divestment, lender settlements, and legal outcomes for clarity on potential future impacts.