Financial Analyst Summary: Race Eco Chain Limited Regulatory Response

Date and Nature of Communication

Race Eco Chain Limited submitted this communication on May 30, 2025, in response to queries from the National Stock Exchange of India Limited regarding deficiencies in the initial submission of financial results for the quarter and financial year ended March 31, 2025.

Company's Clarification on Trading Volume and Financial Results

The document addresses three specific queries from the NSE:

1. Query 1 Response: The company clarified that the financial results were already submitted in the prescribed SEBI format and contained a balancing figure as Note No. 9 in the Financial Results.

2. Query 2 Response: The company confirmed it was submitting the Financial Results in a legible and machine-readable form.

3. Query 3 Response: The company attached the Independent Auditor's Report in the format prescribed by SEBI.

The resubmission includes both standalone and consolidated financial results with complete auditor reports to address these deficiencies.

Reference to Regulatory Compliance

The submission explicitly references compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The auditors, M/s Garg Arun & Associates, conducted their audit in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act, 2013.

Details of Financial Results Clarification

Standalone Financial Highlights (FY2025 vs FY2024):

  • Revenue from Operations: ₹46,020.02 lakhs (vs ₹33,849.88 lakhs) - 36.0% increase
  • Other Income: ₹111.47 lakhs (vs ₹67.39 lakhs)
  • Total Income: ₹46,141.38 lakhs (vs ₹33,917.27 lakhs)
  • Profit Before Tax: ₹476.33 lakhs (vs ₹270.10 lakhs)
  • Profit for the Year: ₹375.76 lakhs (vs ₹156.72 lakhs)
  • Basic EPS: ₹2.20 (vs ₹0.95)
  • Diluted EPS: ₹2.20 (vs ₹0.95)

Q4 FY2025 Standalone Performance:

  • Revenue from Operations: ₹13,000.00 lakhs
  • Profit for the Quarter: ₹126.88 lakhs
  • Basic EPS: ₹0.74

Consolidated Financial Highlights (FY2025 vs FY2024):

  • Revenue from Operations: ₹55,509.54 lakhs (vs ₹34,748.13 lakhs) - 59.7% increase
  • Profit Before Tax: ₹554.58 lakhs (vs ₹272.90 lakhs)
  • Profit for the Year: ₹419.47 lakhs (vs ₹154.70 lakhs)
  • Basic EPS: ₹2.49 (vs ₹0.94)
  • Diluted EPS: ₹2.45 (vs ₹0.94)

Segment-wise Revenue Breakdown (Standalone FY2025):

  • Recycle Division: ₹43,265.39 lakhs (94.0% of total)
  • Restore Division: ₹893.82 lakhs (1.9% of total)
  • Biomass Division: ₹1,870.70 lakhs (4.1% of total)

Key Corporate Developments:

  • The company invested ₹71.98 million in three subsidiary acquisitions:
  • 51% of Silverline Eco Thrive Limited for ₹31.875 million
  • 51% of Ganesha Recycling Chain Private Limited for ₹30.600 million
  • 95% of Vasundhara Envirogreen Private Limited for ₹9.500 million
  • Ganesha Recycling Chain Private Limited acquired 50% of Gem Polymers Pvt Ltd, making it an associate company
  • The company was allotted 4,350,000 equity shares on January 1, 2025, upon conversion of warrants from Prime Industries Limited, which became an associate company with 20.71% equity stake

Auditor Confirmation:

M/s Garg Arun & Associates issued unmodified opinions on both standalone and consolidated financial results, confirming they:

  • Are presented in accordance with Regulation 33 requirements
  • Give a true and fair view in conformity with Ind AS and accounting principles generally accepted in India
  • Include proper disclosure of acquisitions and investments made during the year

Topic Tags: Regulatory Response, Financial Results Clarification, SEBI Compliance, Earnings Release, Acquisition Update