Bhagawati Oxygen's profit is ₹326.81 lakhs. Its plant is still shut.
A full-year profit reversal comes entirely from arbitration income, not operations. The gas manufacturing plant remains closed.
What's new
- Full-year net profit of ₹326.81 lakhs on non-operational income of ₹468.28 lakhs.
- Core revenue from operations was just ₹48.67 lakhs due to the plant closure.
- Arbitration settlement with Hindustan Copper is being pursued through Vivad se Vishwas II.
Why this matters
The profit is a one-time cash injection from a legal settlement, not a signal of business recovery. For a nano-cap, it's a large inflow, but the core business is non-existent.
What we're watching
- The final cash inflow from the Vivad se Vishwas II settlement.
- Any plan to restart the closed manufacturing plant.
- Whether future results rely on more settlements or a return to operations.
The full read
Bhagawati Oxygen's plant is shut. Its profit is real. The company booked a full-year net profit of ₹326.81 lakhs, reversing a ₹45.09 lakh loss, almost entirely on ₹468.28 lakhs in non-operational income. Core revenue from operations was a token ₹48.67 lakhs. The windfall stems from a ₹7.42 crore arbitration award against Hindustan Copper, which Bhagawati is now trying to collect through the Vivad se Vishwas II settlement scheme. For a nano-cap with an ₹8 crore market cap, this single inflow represents about 40% of the company's valuation. The profit is cash in hand, but it doesn't signal a business recovery. The plant remains closed.
Questions answered
- Where did the profit come from if the plant is shut?
- The profit is entirely from 'Other Income' of ₹468.28 lakhs for the year, likely linked to an arbitration settlement. Core revenue from operations was just ₹48.67 lakhs.
- What is the status of the Hindustan Copper dispute?
- Bhagawati has a ₹7.42 crore arbitration award in its favor. It has enrolled in the Vivad se Vishwas II scheme to settle the claim and collect the money.
- Is the core business still operational?
- No. The gas manufacturing plant remains closed. Core revenue from operations was ₹48.67 lakhs for the full year and just ₹0.61 lakhs for the final quarter.