(BSE: 500356 | NSE: RAMANEWS)
Date: February 5, 2025Shree Rama Newsprint Limited (SRNL) announced its unaudited financial results for the third quarter (Q3 FY25) and nine months ended December 31, 2024, after a Board of Directors meeting held on February 5, 2025.
Key Financial Highlights (Standalone)
(Figures in ₹ Lakhs)| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 1,243.03 | 900.18 | 1,325.42 | 3,280.58 | 3,403.65 | 4,703.68 |
| Total Income | 1,369.67 | 1,007.26 | 1,370.61 | 3,601.90 | 3,486.73 | 4,834.14 |
| Total Expenses | 2,065.65 | 1,775.52 | 2,058.51 | 5,798.86 | 6,057.57 | 8,125.12 |
| EBITDA | (577.53) | (753.08) | (584.16) | (2,166.48) | (2,259.91) | (3,173.22) |
| Finance Cost | 913.45 | 910.43 | 924.61 | 2,725.39 | 2,753.67 | 3,662.32 |
| Profit/(Loss) Before Tax (Continuing Ops) | (695.98) | (768.26) | (687.90) | (2,196.96) | (2,570.84) | (3,290.98) |
| Profit/(Loss) After Tax (Continuing Ops) | (695.98) | (768.26) | (687.90) | (2,196.96) | (2,570.84) | (3,290.98) |
| Profit/(Loss) After Tax (Discontinued Ops) | (7,368.61) | (237.09) | (320.85) | (7,896.27) | (751.01) | (1,545.22) |
| Total Comprehensive Income | (8,060.70) | (1,003.16) | (1,004.89) | (10,071.42) | (3,311.70) | (4,829.95) |
- Continuing Operations: (₹0.47)
- Discontinued Operations: (₹4.99)
- Total EPS: (₹5.48)
Segment Performance
SRNL has discontinued its Paper Division, which was previously a key segment. The remaining business operations focus on the Water Bottle Division, which is now the sole operating segment.Key Corporate Announcements
- Resignation of Company Secretary & Compliance Officer
- Mr. Sharad Jain (Membership No.: F13058) resigned due to regulatory changes in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- The amendment restricts a Company Secretary from holding similar positions in multiple listed entities.
- Effective closure of business hours on February 5, 2025.
- Impairment of Discontinued Paper Division Assets
- The company classified its Paper Division as discontinued operations in FY23.
- As of Q3 FY25, an additional impairment loss of ₹6,956.48 lakhs has been recognized.
Auditor’s Review & Commentary
- The statutory auditors, M/s. Batliboi & Purohit, Chartered Accountants, conducted a limited review.
- They confirmed that the financial statements comply with Ind AS 34 (Interim Financial Reporting).
- Key audit matter:
- The company continues its process of disposing of assets from the discontinued Paper Division.
- The impairment loss reflects reassessment based on a valuation report.
Strategic Outlook
- Focus on Water Bottle Business:
With the Paper Division discontinued, SRNL is streamlining efforts into expanding its water bottle manufacturing. - Asset Disposition Strategy:
The company remains committed to selling off remaining paper division assets, with negotiations ongoing. - Cost Optimization & Debt Management:
- High finance costs (₹913.45 lakhs for Q3 FY25) remain a concern.
- No deferred tax assets recognized due to uncertain future profits.