Why Did Emami Realty’s Q4 Loss Exceed Fourfold?
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Synopsis
Emami Realty Limited has faced a staggering increase in its quarterly net loss, surpassing fourfold compared to previous figures. Explore the disappointing financial results and what lies ahead for this real estate giant.
Key Takeaways
- Consolidated net loss widened to Rs 79.68 crore in Q4 FY25.
- Revenue from operations plummeted by 76.12% to Rs 13.66 crore.
- Annual net loss stood at Rs 126.25 crore in FY25.
- Total expenses rose to Rs 112.16 crore in Q4.
- Project expenses surged by 78.12% QoQ.
Mumbai, May 22 (NationPress) The real estate company Emami Realty Limited has disclosed a significant downturn in its financial results for the fourth quarter (Q4 FY25). The consolidated net loss has escalated over fourfold to Rs 79.68 crore, compared to a loss of Rs 19.47 crore in the previous quarter (Q3 FY25).
The annual loss also increased year-on-year (YoY), with the firm recording a total net loss of Rs 126.25 crore in FY25, a slight rise from Rs 123.10 crore in FY24, as per the company’s filing with the stock exchange.
Revenue from operations saw a drastic decline of 76.12%, falling to Rs 13.66 crore in Q4 FY25, down from Rs 57.22 crore in the previous quarter.
When compared to the same period last year (Q4 FY24), where revenue was Rs 17.45 crore, this represents a 21.72% drop.
The total income for the company also experienced a steep decline, dropping 61.2% to Rs 27.14 crore in Q4 FY25 from Rs 69.96 crore in Q3.
Moreover, the company’s expenses continued to rise, with total costs in Q4 increasing to Rs 112.16 crore, marking a 16.9% rise from Rs 95.94 crore in Q3.
For the entire financial year, expenses rose by 5.5%, totaling Rs 282.16 crore in FY25 compared to Rs 267.44 crore in FY24.
A significant factor contributing to the surging costs was the project expenses, which soared by 78.12% quarter-on-quarter (QoQ) to Rs 50.46 crore.
Additionally, other expenses skyrocketed to Rs 66.44 crore in Q4 from just Rs 1.47 crore in the previous quarter—a remarkable increase of over 4,420%.
The firm, which belongs to the Emami Group, is engaged in developing residential, commercial, and mixed-use properties across various Indian cities such as Mumbai, Kolkata, Chennai, Bhubaneswar, and Jhansi.
In addition, the Board of Directors convened on May 22 and approved the appointment of MKB and Associates, a Kolkata-based firm of Practicing Company Secretaries, as Secretarial Auditors for a term of five years commencing FY 2025-26.
The appointment is contingent upon shareholder approval at the upcoming Annual General Meeting (AGM), as stated in the company's regulatory filing.
Point of View
Emami Realty's recent financial downturn reflects broader challenges within the real estate market. As the company navigates significant losses and rising expenses, it will be crucial to monitor its strategic responses and adaptability. The insights gleaned from this situation may serve as a barometer for the sector's overall health.
NationPress
14/06/2025
Frequently Asked Questions
What caused Emami Realty's quarterly loss?
Emami Realty's loss was primarily driven by a drastic decline in revenue, which fell by 76.12% in Q4 FY25 compared to the previous quarter.
How does the current loss compare to previous years?
The consolidated net loss has increased significantly to Rs 79.68 crore in Q4 FY25 from Rs 19.47 crore in Q3 FY25, and annual losses also rose slightly compared to FY24.
What is the company's revenue for Q4 FY25?
In Q4 FY25, Emami Realty reported revenue from operations of Rs 13.66 crore, down from Rs 57.22 crore in the previous quarter.
What are the implications of rising expenses for Emami Realty?
Rising expenses, which increased by 16.9% to Rs 112.16 crore in Q4, indicate potential challenges in cost management and profitability for Emami Realty.
What steps is Emami Realty taking in response to these financial results?
The Board of Directors has approved the appointment of new Secretarial Auditors, indicating a focus on governance as the company navigates its financial challenges.
