Hindustan Organic Chemicals Limited (HOCL) has successfully secured a significant credit facility from State Bank of India (SBI), bolstering its financial position to meet working capital requirements and enhance operational flexibility.

Credit Facility Details

HOCL executed a loan agreement with SBI on August 16, 2025, for both fund-based and non-fund-based facilities totaling Rs 100.00 crore. The credit facility is structured as follows:

Key Points of the Agreement

• The agreement aims to provide HOCL with the necessary financial resources to support its working capital needs and offer bank guarantee facilities.
• The loan is secured by a first charge on the current assets of the company, demonstrating HOCL's commitment to meeting its financial obligations.
• This credit facility is expected to enhance HOCL's operational capabilities and financial flexibility.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, Hindustan Organic Chemicals Limited promptly disclosed this information to the stock exchange. The company's proactive approach to transparency is evident in its timely communication of this material development to its stakeholders.

Company's Statement

Subramonian H, Company Secretary & Compliance Officer of Hindustan Organic Chemicals Limited, signed the regulatory filing, affirming the company's commitment to keeping investors and the market informed about significant financial arrangements.

This credit facility agreement with State Bank of India marks an important step for Hindustan Organic Chemicals Limited, potentially strengthening its financial position and supporting its operational needs in the coming years.

Hindustan Organic Chemicals Limited (HOCL), a government-owned chemical manufacturing company, has reported its financial results for the first quarter, revealing a significant loss compared to the previous year's profit. The company's board also made several key decisions during its 422nd meeting held on August 13, 2025.

Financial Performance

For the quarter ended June 30, 2025, HOCL reported a standalone net loss of Rs. 3,556.33 lakhs, a stark contrast to the net profit of Rs. 39,154.13 lakhs recorded in the same quarter of the previous year. The company's revenue from operations also saw a substantial decline, dropping to Rs. 5,936.41 lakhs from Rs. 13,662.13 lakhs year-on-year.

Key Financial Metrics

The significant swing from profit to loss can be attributed to various factors, including a sharp decrease in revenue and potentially increased operational costs or exceptional items, though specific details were not provided in the financial results.

Board Meeting Outcomes

During the 422nd Board Meeting, HOCL's directors made several important decisions:

1. Re-appointment of Cost Auditors: M/s. B.B.S. Associates were re-appointed as cost auditors for FY 2025-26 at a fee of Rs. 50,000 plus GST, subject to ratification at the Annual General Meeting (AGM).

2. Appointment of Secretarial Auditors: M/s. S Basu & Associates were appointed as secretarial auditors for a five-year term starting FY 2025-26, at a fee of Rs. 63,750 plus GST, subject to shareholder approval.

3. AGM Schedule: The 64th Annual General Meeting was scheduled for September 26, 2025, at 3:30 PM, to be conducted through video conferencing.

4. Other Approvals: The board approved the Director's Report for FY 2024-25, the draft notice for the 64th AGM, and appointed scrutinizers for the AGM. They also fixed the date for book closure and appointed NSDL for providing e-voting facilities.

5. Capital Reduction: The board approved a paid-up capital reduction from the Ministry of Corporate Affairs due to the waiver of Preference Shares.

Looking Ahead

While the financial results show a challenging quarter for HOCL, the company's proactive measures in corporate governance, such as the timely appointment of auditors and scheduling of the AGM, demonstrate its commitment to regulatory compliance and shareholder engagement.

The significant decline in revenue and the shift from profit to loss will likely be areas of focus for investors and analysts in the coming quarters. HOCL's management may need to address these concerns and outline strategies for improving financial performance in future communications with stakeholders.

As a government-owned enterprise operating in the chemicals segment, HOCL's performance can have broader implications for the sector and potentially for government divestment plans, if any. Stakeholders will be keenly watching for any turnaround strategies or government interventions that might be announced in the near future.