Khaitan (India) Limited — Results, 18-07-2025: Integrated Filing- Financial

Khaitan (India) Ltd. (KHAITANLTD) reports Q1 FY25 financial results with a mixed bag for investors.

**Revenue Performance:** Total revenue surged 53% YoY to **Rs 29.66 Cr** from Rs 19.39 Cr. This strong growth was primarily driven by the **Electrical Goods** segment, which saw its revenue jump significantly from Rs 10.37 Cr to Rs 29.57 Cr YoY.

**Profitability & EPS:** Despite the impressive revenue growth, net profit declined 25% YoY to **Rs 1.56 Cr** from Rs 2.08 Cr. Consequently, Earnings Per Share (EPS) also dropped to **Rs 3.29** from Rs 4.39. This indicates pressure on profit margins.

**Operational Costs:** Total expenses increased at a faster rate than revenue growth, impacting the bottom line. While finance costs showed a decrease, higher 'Purchases of Trading Goods' and 'Other expenses' contributed to the profit decline.

**Key Metrics:** The **Sugar division** remains a significant concern. Its production has been suspended for a long time due to heavy losses. Notably, the statutory auditors issued a **qualified opinion**, stating that the sugar business *should* be recognized as 'Discontinued Operations,' but currently isn't.

**Balance Sheet Health:** Investors should note that certain balance sheet items, including debtors, creditors, loans, and advances, are "subject to confirmation/reconciliation." This adds a layer of potential uncertainty regarding the reported figures.

**Management Commentary:** Management is actively exploring options for the struggling sugar unit and maintains that its assets are not impaired.

**Final Takeaway:** While the Electrical Goods segment shows strong growth momentum, the persistent issues with the non-operational sugar business and the auditor's qualification are major overhangs. This signals a cautious outlook, and investors should closely monitor how the company addresses the sugar division's classification and the pending balance sheet reconciliations.