Mumbai, February 3, 2025 – GHCL Textiles Limited (NSE: GHCLTEXTIL, BSE: 543918) announced its unaudited financial results for the quarter and nine months ended December 31, 2024, alongside key strategic decisions taken at its 24th Board Meeting.
Financial Performance Snapshot (INR in Crore)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 285.00 | 304.62 | 244.41 | 877.55 | 767.72 | 1,053.87 |
| Other Income | 2.61 | 2.03 | 1.65 | 5.49 | 4.27 | 5.63 |
| Total Income | 287.61 | 306.65 | 246.06 | 883.04 | 771.99 | 1,059.50 |
| EBITDA | NA | NA | NA | NA | NA | NA |
| Profit Before Tax (PBT) | 12.64 | 15.92 | 6.18 | 44.25 | 20.19 | 34.55 |
| Net Profit | 9.37 | 20.60 | 4.49 | 41.77 | 14.80 | 25.05 |
| EPS (INR per share) | 0.98 | 2.15 | 0.47 | 4.37 | 1.55 | 2.62 |
Key Financial Highlights
- Revenue Growth: GHCL Textiles recorded a 16.6% YoY increase in revenue for Q3 FY25, reaching ₹285.00 crore, reflecting robust market demand.
- Profitability: The company reported a 109% YoY jump in net profit, rising to ₹9.37 crore, primarily driven by operational efficiencies.
- Deferred Tax Reversal: The company reversed ₹8.62 crore in deferred tax liability following amendments in the Finance Act 2024.
- Employee Expenses: Increased to ₹19.27 crore, up from ₹14.87 crore in Q3 FY24, reflecting workforce expansion.
- Finance Costs: Declined significantly to ₹0.59 crore, compared to ₹1.71 crore in Q3 FY24, reflecting improved financial structuring.
Strategic Announcements
1. Discontinuation of Kaveri Section at Manaparai Unit
- The Board approved the closure of the Kaveri section at the Manaparai unit due to high maintenance costs and outdated machinery.
- This section contributed ₹61 crore in revenue, representing 5.76% of total revenue for FY24, and ₹5.99 crore to net worth (0.43% of total).
- Closure to be completed by March 31, 2025. Proceeds from asset sales will be reinvested into modernizing value-added production.
2. Capital Budget Allocation
- The Board approved a ₹38 crore capital investment for a new Knitting Project, signaling expansion in textile capabilities.
3. Board Committee Reconstitution (Effective March 6, 2025)
- Audit Committee: Led by Mr. C R Rajagopal.
- Nomination & Remuneration Committee: Chaired by Mrs. Sudha Pillai.
- Stakeholders Relationship Committee: Headed by Justice Ravindra Singh (Retd.).
- Risk Management Committee: Chaired by Mr. C R Rajagopal.
- Corporate Social Responsibility Committee: Led by Mr. Anurag Dalmia.
Management Commentary
Anurag Dalmia, Chairman, GHCL Textiles, stated:"The company's continued focus on operational efficiencies and cost optimization has yielded strong results. The planned closure of the Kaveri section is a strategic move to modernize our assets and enhance productivity. Additionally, the ₹38 crore Knitting Project underscores our commitment to product diversification and long-term growth."
Strategic Outlook
- Market Positioning: GHCL Textiles remains focused on high-margin textile segments, leveraging modernized production lines post asset reallocation.
- Expansion & Innovation: The newly approved Knitting Project aims to cater to premium textile markets.
- Cost Optimization: The company continues debt reduction efforts and efficiency-driven capital allocation.
Conclusion
GHCL Textiles Limited delivered a strong quarter with improved profitability and strategic restructuring, aiming for sustained long-term growth in the textile sector. Investors will closely watch the execution of the Kaveri closure plan and the new Knitting Project as key drivers of future performance.