Why Did Harsha Engineers Report a Q4 Net Loss?
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Synopsis
Harsha Engineers International Limited faced a significant financial setback, demonstrating a net loss of Rs 2.39 crore for Q4 FY25. This stark contrast to last year's profit of Rs 36.78 crore raises questions about the company’s financial health and future prospects. Discover the details behind this unexpected downturn and its implications.
Key Takeaways
- Net loss of Rs 2.39 crore in Q4 FY25.
- Exceptional item of Rs 27.68 crore impacted financial performance.
- Revenue decreased by nearly 2 percent year-on-year.
- EBITDA fell by 35.5 percent compared to last fiscal year.
- Dividend of Re 1 per share recommended despite losses.
Mumbai, May 8 (NationPress) Harsha Engineers International Limited disclosed a net loss of Rs 2.39 crore for the fourth quarter of the financial year 2024-25 (Q4 FY25), marking a significant decline from a net profit of Rs 36.78 crore in the same period last year.
This loss was primarily attributed to an exceptional item amounting to Rs 27.68 crore, which severely impacted the company’s financial performance.
The revenue generated from operations during the January-March 2025 quarter (Q4) was Rs 372.97 crore, reflecting a decline of nearly 2 percent from Rs 380.40 crore reported for the same quarter last fiscal (Q4 FY24).
The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) plummeted by 35.5 percent to Rs 35.2 crore in Q4, down from Rs 54.5 crore in the corresponding period of the previous fiscal year.
This downturn resulted in a decrease in the operating margin to 9.4 percent, compared to 14.3 percent a year earlier.
Total expenses for the quarter increased by 3.09 percent to Rs 349.13 crore, up from Rs 338.67 crore in the same timeframe last year.
When compared to the previous quarter, expenses rose by 13.22 percent from Rs 308.38 crore, indicating a growing cost base.
Despite the disappointing quarterly performance, Harsha Engineers has proposed a dividend of Re 1 per share.
In response to the announcement, the company's shares dipped by 4.59 percent in early trading, reaching a low of Rs 354.50.
Although the stock managed to recover somewhat later, it remained down by 1.94 percent at Rs 363.80.
Year-to-date (YTD), the stock has seen a correction of 27.33 percent, and it has decreased by 13.69 percent over the past year.
In the last six months, the stock has lost 28.19 percent in value. Over the past five days, the share price has fallen by Rs 8.40 or 2.26 percent, and in the last month, it has declined by Rs 10.95 or 2.92 percent.
Point of View
I find it essential to approach Harsha Engineers' recent financial results with an objective lens. The reported loss signifies challenges that the company must address to regain investor trust and ensure sustainable growth in the upcoming quarters.
NationPress
24/05/2025
Frequently Asked Questions
What caused the net loss for Harsha Engineers?
The net loss was primarily due to an exceptional item of Rs 27.68 crore, significantly impacting the company's financial results.
How did the revenue change compared to last year?
Revenue from operations decreased nearly 2 percent, from Rs 380.40 crore in Q4 FY24 to Rs 372.97 crore in Q4 FY25.
What is the EBITDA for Q4 FY25?
The EBITDA for Q4 FY25 fell to Rs 35.2 crore, a drop of 35.5 percent from Rs 54.5 crore in the same quarter last year.
Is Harsha Engineers paying dividends despite the loss?
Yes, the company has recommended a dividend of Re 1 per share despite reporting a net loss.
How has the stock performed recently?
The stock has seen a significant decline, with a year-to-date correction of 27.33 percent and a recent dip of 2.26 percent over the past five days.
