Gujarat Toolroom Share Price Hits Lower Circuit; Releases Q3 FY25 Results

Gujarat Toolroom’s share price hit the lower circuit at ₹2.34, marking a 4.88% decline (-₹0.12) on February 20, 2025 at 10:10 AM on the BSE. The stock opened at ₹2.34, with an intraday high of ₹2.43 and a low of ₹2.34.

Gujarat Toolroom Q3 FY25

The Quarter-on-Quarter (QoQ) comparison of Gujarat Toolroom Limited’s consolidated unaudited financial results for Q3 FY 2024-25 (ended December 31, 2024) and Q2 FY 2024-25 (ended September 30, 2024) shows a decline in performance.

The company’s revenue from operations fell from ₹27,050.76 Lakhs in Q2 to ₹23,073.77 Lakhs in Q3, indicating a decrease of ₹3,976.99 Lakhs. Additionally, the net profit dropped sharply from ₹2,678.76 Lakhs to ₹142.88 Lakhs, suggesting a significant decline in profitability.

Auditors Raise Concerns Over Financial Transparency

Auditors noted that ₹63.17 lakh worth of purchase invoices were missing, stock verification could not be conducted due to a lack of documentation, and certain agricultural goods transactions lacked proper invoices.

Additionally, financials of GTL GEMS DMCC, a subsidiary, were not audited independently but were based on management-provided data.

Gujarat Toolroom’s Four Key Business Segments

Gujarat Toolroom Ltd. operates in 4 key business segments, diversifying its revenue streams across different industries.

These segments include Construction Material, Rough Diamonds & Gold, Agricultural Products, and Others (Fabrics, Shares Trading, Pharma, etc.). Among these, Rough Diamonds & Gold is the most significant revenue driver.

Conclusion

Gujarat Toolroom Ltd’s Q3 FY25 results reflect a challenging financial quarter, with a notable decline in revenue and net profit, triggering a sharp sell-off and hitting the lower circuit at ₹2.34.

The auditors’ concerns over missing invoices, stock verification issues, and unaudited subsidiary financials have further raised red flags for investors.

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