Gammon India Limited Revised Q2 FY25 Results: Net Loss ₹173.65 Cr, Auditors Cite Material Uncertainties
Gammon India Limited reported a revised net loss of ₹173.65 crore for Q2 FY25, an improvement from ₹342.80 crore in Q2 FY24. The half-yearly net loss was ₹489.48 crore. Auditors cited material uncertainties regarding the going concern assumption due to liquidity issues and ongoing restructuring. Auditors also qualified their report on claims and disputed penal interest.
The qualified audit report and the material uncertainties related to going concern have a significant impact on the company's financial health and investor confidence, potentially affecting its ability to continue operations.
The company reported significant losses and the auditors highlighted material uncertainties regarding its going concern status, coupled with qualified conclusions on financial statements. These factors indicate a negative financial and operational outlook.
Gammon India Limited announced the outcome of its Board Meeting held on August 2, 2025, where the Un-Audited Revised Consolidated Financial Statements for the quarter and half year ended September 30, 2024, were approved. The company reported a net loss of ₹173.65 crore for the quarter ended September 30, 2024, compared to a net loss of ₹342.80 crore in the same period of the previous year. For the half year ended September 30, 2024, the net loss stood at ₹489.48 crore, an improvement from ₹649.85 crore in the corresponding period last year.
The financial results were revised due to a clerical error related to the "Net gain/ (loss) on fair value of equity instruments through OCI". The company's total assets were ₹1,226.56 crore as of September 30, 2024, with total equity at ₹(11,001.09) crore. Total liabilities stood at ₹12,078.25 crore. The company's current liabilities exceeded its current assets by ₹11,932.61 crore as at September 30, 2024.
The auditors have issued a qualified conclusion, drawing attention to material uncertainties regarding the going concern assumption. These uncertainties stem from the company's liquidity crunch, NPA status with lenders, pending restructuring plans, and various legal proceedings. The auditors also highlighted issues related to the recoverability of claims amounting to ₹30.00 crore and the dispute over penal interest and charges of ₹743.28 crore. Additionally, a subsidiary, Ansaldo Caldaie Boilers India Limited, has received Share Application Money of ₹16.64 crore which is yet to be allotted or refunded as per RBI directives, leading to a qualification in its review report. The company's management, however, continues to believe that the going concern assumption is intact, pending resolution of these matters with lenders and prospective investors.
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