Visa Steel reports widening net loss, negative net worth amid financial woes

For the financial year ended March 31, 2025, Visa Steel Limited reported a standalone revenue from operations of H 5,664.90 million, down from H 6,698.98 million in the previous year. The company recorded a profit before interest, depreciation, tax, and exceptional items of H 322.20 million, significantly higher than H 66.00 million in FY 2023-24. However, after accounting for exceptional items of H 4,693.21 million, the standalone net loss for the year widened to H 5,165.51 million, compared to a net loss of H 718.93 million in the prior year.

The company's net worth has been fully eroded, with total equity reported as negative H 13,608.35 million. Total liabilities stood at H 18,942.20 million. The report highlights non-recognition of interest expense on borrowings as a key audit qualification, with an estimated H 13,246.23 million in unprovided interest.

Visa Steel's operations continued under a conversion arrangement due to a lack of working capital. The company remains focused on debt resolution and plans to raise funds by inducting an investor. The board did not recommend a dividend for FY 2024-25 due to the losses incurred.