Astron Paper & Board Mill Limited — Results, 04-07-2025: Reply to Clarification- Financial results

Astron Paper & Board Mill Ltd. has announced a board meeting on 14th February 2025, approving the financial results for the quarter and half-year ended 31st December 2024.

Standalone highlights (Rs. in Lakhs):

- Revenue from operations: 136.05 (Q3), 9506.28 (9M)

- Total expenses: 2095.70 (Q3), 13976.76 (9M)

- Profit before tax: 1959.44 (Q3), 4434.20 (9M)

- Net profit after tax: 261.87 (Q3), 434.20 (9M)

- Basic EPS: Rs. 5.63 (Q3), Rs. 9.52 (9M)

Consolidated highlights (Rs. in Lakhs):

- Revenue from operations: 137.00 (Q3), 9570.73 (9M)

- Total expenses: 2123.19 (Q3), 14108.88 (9M)

- Profit before tax: -1985.99 (Q3), 4538.16 (9M)

- Net profit after tax: -279.49 (Q3), 453.86 (9M)

- Basic EPS: Rs. -6.01 (Q3), Rs. 9.75 (9M)

Key points flagged by auditors with adverse conclusions:

- No provision made for gratuity liabilities and expected credit loss on long overdue trade receivables (~Rs. 2.53 Cr standalone, Rs. 4 Cr consolidated).

- Investments of Rs. 4.04 Cr in wholly owned subsidiary Balaram Papers Private Limited not impaired despite resolution to dispose of subsidiary.

- Loans to subsidiary amounting to Rs. 20.85 Cr interest-free as of Dec 2024.

- Shutdown of major plants at Halvad, Bhuj, and Mehsana since September 2024 with no resumption, causing sustained cash losses, reduced sales, and significantly eroded net worth.

- Company’s bank accounts are classified as NPA; there are pending litigations related to tax demands.

- Inventories written down by Rs. 9.74 Cr due to deterioration following plant shutdown; import raw materials at port have not been accounted for; possible auction notices received.

- Management has prepared results on going concern basis, but auditors note going concern status is substantially impaired and financials should reflect this.

Overall, Astron Paper is grappling with operational shutdowns, liquidity stress, and legacy financial issues impacting its financial stability. The quarter showed a standalone profit turnaround, but consolidated numbers reveal a net loss due to subsidiary challenges and ongoing business disruptions. The absence of key provisions and continuing operational paralysis pose significant risks to near-term recovery and investor confidence.