Asahi Songwon Colors Limited has announced the resignation of Mr. Sudhin Bhagwandas Choksey from his position as Non-Executive Independent Director, effective from close of business hours on April 04, 2026. The company informed stock exchanges about this board change in compliance with regulatory requirements.

Resignation Details

Mr. Choksey submitted his resignation through a letter dated April 04, 2026, which was received by the company via email on April 05, 2026 at 7.46 am (IST). The director cited current time constraints as the primary reason for stepping down from his position on the board.

Regulatory Compliance and Additional Disclosures

The company has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following the initial intimation dated April 05, 2026, the company submitted additional details on April 08, 2026, as required under clause 7 of Para A of Part A of Schedule III of SEBI LODR.

Company Secretary & Compliance Officer Joseph Saji Varghese signed the regulatory filing, ensuring proper documentation of the board change. The disclosure follows the requirements outlined in SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, regarding changes in Directors and Key Managerial Personnel.

Director's Other Board Positions

Mr. Choksey holds directorships in multiple listed entities, demonstrating his extensive experience in corporate governance. His current board positions and committee memberships span across various sectors.

Confirmation and Documentation

In his resignation letter, Mr. Choksey confirmed that there are no other material reasons for his resignation beyond the time constraints mentioned. The company has assured that all necessary forms will be submitted to the Office of the Registrar of Companies, Gujarat, in accordance with applicable regulatory requirements.

The resignation represents a routine corporate governance matter handled in accordance with established regulatory frameworks, with the company maintaining complete transparency throughout the process.

Asahi Songwon Colors Limited has received a comprehensive rating reaffirmation from CARE Ratings Limited, with all bank facility ratings maintained at their current levels with positive outlook. The rating agency's decision reflects the company's strengthened operational performance and improved financial metrics during FY25.

Rating Details and Facility Breakdown

CARE Ratings has reaffirmed ratings across multiple facility categories, demonstrating confidence in the company's creditworthiness:

The positive outlook reflects CARE's expectation of higher cash flow generation from the company's Azo pigment business and API segments, which are expected to improve return indicators and debt coverage metrics.

Strong Operational Performance in FY25

Asahi Songwon Colors demonstrated significant improvement across all business segments during FY25. The company reported consolidated revenue growth of 32% with total operating income reaching ₹566 crore compared to ₹428 crore in FY24. This growth was driven by improved capacity utilization across three key segments: phthalocyanine pigments, azo pigments, and active pharmaceutical ingredients (APIs).

The phthalocyanine pigments segment saw capacity utilization increase to over 80% in FY25 from approximately 60% in FY24, supported by improved demand following inventory restocking across end-use sectors. The azo pigments segment achieved 64% capacity utilization in FY25, further improving to 76% in 9MFY26.

Financial Metrics Show Substantial Improvement

The company's profitability metrics registered remarkable improvement during FY25:

PBILDT margin improved substantially by 565 basis points to 10.56% in FY25, supported by improved operational efficiencies due to higher capacity utilization across segments. The company also achieved positive PAT margin of 2.98% in FY25 after reporting losses at PAT level in the previous year.

Business Diversification and Client Relationships

Asahi Songwon Colors maintains strong relationships with leading global colorant companies including DIC Corporation (Japan), Sun Chemical Corporation (USA), Clariant Chemicals India Limited, and BASF SA (Germany). Revenue from key clients accounted for approximately 46% of total sales in FY25 and 9MFY26, showing gradual diversification from the 70%-80% concentration in previous years.

The company has diversified its business profile through the acquisition of Atlas Lifesciences Private Limited, adding pharmaceutical API business to its portfolio. In FY25, the pigments segment contributed 82% of revenue while the API business contributed 18%. The API segment showed improvement supported by backward integration initiatives, with growth in sales volume despite moderation in realization.

Capital Structure and Liquidity Position

The company maintains a comfortable capital structure with overall gearing of 0.74x as of March 31, 2025, compared to 0.83x in the previous year. Debt coverage indicators improved with interest coverage of 3.63 times and total debt to PBILDT of 3.14 times in FY25. The company's liquidity position remained adequate with low utilization of working capital facilities, ranging from 11% to 35% during the 12 months ended December 2025.