Financial makeup at its best - when management has not done what they shout in each concall / interview - this is what they do - increase the base of last year. Here they simply removed the value of Nuvama stake to increase the last year (FY2024) net debt value when compared to this year (FY2025) net debt position.
Based on what company has reported over last 1 year, following can be observed:
Business
Mar – 2024
June – 2024
Sep – 2024
Dec – 2024
Mar – 2025
YOY Change
NBFC
4,126
Left blank as company reported gross debt
3,650
3,089
2,890
(1,236)
Nido
1,370
1,465
1,293
1,750
380
EAAA
445
385
414
364
(81)
ARC
1,351
830
299
(159)
(1,510)
Corporate
8,048
5,480
6,496
6,325
(1,723)
Net Debt
15,340
12,710
11,810
11,591
11,170
(4,170)
NBFC net debt reduced by just Rs. 1,236 Cr. - which must be in proportion to recoveries and scale down of legacy AUM.
Nido net debt increased by Rs. 380 Cr. - can be attributed to improved disbursement
EAAA net debt reduced by Rs. 81 Cr. - not much material impact
ARC net debt reduced significantly by Rs. 1,510 Cr. - as the recoveries from stressed assets are improving
Corporate net debt reduced just by Rs. 1,723 Cr - this is the pain point and needs surgical strike with absolute precision.
From above, it seems financial makeup in reporting has been done to hide goof up at corporate level debt.
From Nuvama stake sale - company earned more than Rs. 3000 Cr+ (in June 2024 results PPT they reported Nuvama stake at Rs. 3,055/-) considering the high price at which stake was sold in two different tranches.
Now, considering the pure cash inflow of Rs. 3000 Cr+ and debt reduction of Just Rs. 1,723 Cr - creates a gap of Rs. 1,275 Cr.
This gap requires serious clarification from management - but will they explain - not sure.
If we retail investors have material answer to this gap - absolutely not.
If company has invested this amount in any business to solidify financial position - no disclosure from company.
Is it good or bad - for sure it is bad corporate governance - if this gap remains unanswered or if is known to only few.
This time management even didn’t bother to mention if it is standalone or consolidated.
Hence, in absence of any clarity, i am assuming these are standalone results (also on the basis of comparison to last published results i.e. Q4FY2025).
Also EAAA approved ESOPs @ Rs. 993 per equity share.
Considering, outstanding share quantity of approx. 6.4 Crores (basis equity share capital as on Q4FY2025) - valuation of EAAA turns out to be approx. Rs. 6,000/- Crores.
This is Pre-IPO valuation. Let’s see for what valuation Mr. Shah file revised DRHP for EAAA.
