Nilachal Refractories Ltd — Results, 30-05-2025: Result

Nilachal Refractories Ltd. has announced a board meeting approving the financial results for the quarter and half-year ended March 31, 2025. The company reported a net loss of Rs. 22.02 Cr, widening from the previous year's Rs. 6.50 Cr loss, with total income at Rs. 1.06 Cr. Significant impairment loss of Rs. 19.34 Cr was recognized on Capital Work in Progress (CWIP), which remains largely uncapitalized over 13 years. The company’s net worth turned negative at Rs. 27.94 Cr, with current liabilities exceeding current assets by Rs. 12.57 Cr, raising material uncertainty about its ability to continue as a going concern. Management is engaging strategic investors, expanding product lines, and exploring export markets to revive operations. Auditor qualified opinion highlights issues on valuation of CWIP by a non-registered valuer, missing actuarial valuation for employee benefits, and unprovided cumulative dividends and redemption premiums on preference shares, impacting reported losses and reserves. Management plans talks with preference shareholders for possible waiver or conversion.