Binny Mills Limited , a textile trading and warehousing company, has announced the completion of a significant share buyback, reported its financial results, and received approval for promoter reclassification.

Promoter Reclassification

BSE Limited approved Binny Mills Ltd's application to reclassify promoter shareholders to public shareholders under Regulation 31A of SEBI Listing Regulations. The company applied on May 09, and received approval on August 08. Six entities were reclassified as public shareholders, all holding zero shares (0.00% shareholding):

• Sheetala Credit and Holdings Private Limited
• Calcom Credit and Holdings Private Limited
• Rajat Chakra Credit and Holdings Private Limited
• Satluj Credit and Holdings Private Limited
• Twentieth Century-Apco Leasing Private Limited
• Rajalakshmi N

The overall shareholding structure remains unchanged, with promoter holding at 17,81,806 shares (68.97%) and public holding at 8,01,464 shares (31.03%).

However, BSE issued a warning letter to Binny Mills for delayed disclosure compliance. While the company submitted its application on May 09, it only disclosed this material event on July 05, violating the 24-hour disclosure requirement under Regulation 31A(8)(c). BSE advised the company to exercise due caution and implement corrective measures to prevent future lapses.

Share Buyback

The company has successfully completed a buyback of 6,05,204 equity shares from its promoters and promoter group, as approved by the board of directors. This buyback, valued at Rs. 34.00 crores, was executed on September 30, in accordance with the National Company Law Tribunal (NCLT) order dated September 13. The buyback has resulted in a reduction of the company's share capital.

Financial Performance

Binny Mills Limited reported:

• Revenue from operations: Rs. 632.18 lakhs, down from Rs. 697.42 lakhs in the previous year
• Net loss: Rs. 1,270.55 lakhs, compared to a net loss of Rs. 1,450.12 lakhs in the previous year

The company's financial performance was impacted by changes in sales across its business segments:

• Warehousing division: Rental income increased by 3.90% to Rs. 289.92 lakhs
• Showrooms division: Sales increased by 12.14% to Rs. 146.11 lakhs
• Textiles division: Sales decreased by 45.46% to Rs. 198.71 lakhs

Segment-wise Performance

Board Changes

The company has made several changes to its board of directors during the year, including:

• Appointment of new independent directors: Shri M. Padmanabhan, Shri Viyash Perumal, Shri Richard Henry, and Shri Ashwath Naroth
• Appointment of Shri Thillainayagam Yeswanth as a Non-Executive Non-Independent Director
• Resignation of Shri Natarajan Prasanna as Executive Director

Future Outlook

Binny Mills Limited plans to improve its sales performance in the Textile Division by focusing on wholesale customers while retaining existing retail customers. The company also aims to procure bulk orders for its Textile division to improve sales and profit. Additionally, there are plans to develop and optimize the use of warehouse space to attract clients and maximize income.

The company continues to face challenges in the competitive retail textile business but remains confident in mitigating risks through its established reputation and brand image.

Binny Mills Limited's shares are listed on the BSE Limited under the scrip code 535620. The company's stock trading, which was suspended on March 5 due to non-appointment of Independent Directors, has since been revoked as of July 9.

Binny Mills Limited , a textile company based in Chennai, has reported its financial results for the first quarter ended June 30, 2023, revealing a widened net loss and decreased revenue. The company's board has also set the date for its upcoming Annual General Meeting (AGM).

Financial Performance

Binny Mills reported a net loss after tax of Rs 287.30 lakhs for the quarter ended June 30, 2023, compared to a loss of Rs 267.47 lakhs in the same quarter of the previous year. This represents an increase in losses by approximately 7.4% year-over-year.

The company's financial performance for the quarter can be summarized as follows:

The total income from operations declined to Rs 130.46 lakhs from Rs 155.71 lakhs in the corresponding quarter of the previous year, marking a decrease of 16.2%. This reduction in revenue likely contributed to the increased losses for the quarter.

The company's earnings per share (EPS) stood at negative Rs 11.55, compared to negative Rs 8.39 in the same quarter last year, indicating a 37.7% increase in loss per share.

Financial Position

As of June 30, 2023, Binny Mills maintains a paid-up equity share capital of Rs 258.33 lakhs. However, the company reported a negative net worth of Rs 22,858.79 lakhs, highlighting significant financial challenges.

Board Meeting Outcomes

The Board of Directors met on July 31, 2023, and approved several key items:

1. The unaudited financial results for the quarter ended June 30, 2023.
2. The Auditors Report and Directors Report for the financial year 2022-23.
3. Scheduled the 18th Annual General Meeting for August 29, 2023, to be conducted via video conference.

Annual General Meeting

Shareholders should note that the 18th Annual General Meeting of Binny Mills Limited is set to take place on August 29, 2023, at 3:00 PM IST. The meeting will be held through video conference mode, in line with current corporate practices.

Conclusion

Binny Mills Limited continues to face financial headwinds, as evidenced by the widening losses and decreased revenue in the first quarter of the fiscal year 2023-24. The negative net worth position underscores the challenges ahead for the company. Shareholders and potential investors will likely look forward to the upcoming AGM for more insights into the company's strategies to address these financial concerns and improve its market position.