GATEWAY: Q2 revenue grew YoY, but profit fell; Jaipur land proceedings remain a key audit qualification

What happened

Gateway reported second-quarter consolidated revenue rose year over year to ₹58,012.67 lakh, while profit after tax fell to ₹5,852.85 lakh. Auditors qualified their review over an ₹866.25 lakh Jaipur land advance tied to benami proceedings, which involve disputed property ownership. A five-year director reappointment was approved, subject to shareholders.

Confirmed

Global impact / market context

Falling profit despite higher revenue means the company kept less of each sale, so costs or other charges likely rose. The auditor qualification flags the Jaipur land advance as unresolved, which matters because the ₹866.25 lakh may not be fully recoverable and could pressure reported earnings.

Analyst inference

Readers should note this is an AI-generated summary and the original source warrants checking. The benami proceedings mean ownership of the land is disputed, so recovery of the advance is uncertain. The director reappointment still needs shareholder approval, leaving governance partly unresolved.

Analyst inference

What to watch

1. Watch whether the Jaipur land advance of ₹866.25 lakh is recovered or written down as benami proceedings, which involve disputed ownership, continue. Confirmed
2. Track shareholder voting on the five-year director reappointment, since approval is still needed and the outcome could change board composition. Proposed
3. Monitor next quarter's profit after tax against revenue to see whether the gap between revenue growth and profit persists or widens. Analyst inference

Evidence

• Original source link unavailable