Kay Power & Paper Limited has announced the transmission of equity shares under an approved scheme of demerger, following regulatory approval from the Hon'ble Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Share Transmission Details

Under the approved demerger scheme, 1,42,300 equity shares representing 0.40% of the company's paid-up equity share capital will be transmitted from the current holder to a new entity within the promoter group.

Shareholding Structure Changes

The transmission involves a change in the identity of the shareholding entity within the promoter group, while maintaining the same shareholding percentage.

Corporate Structure Impact

Following the completion of this transmission, Kay Chandra Capital and Investment Private Limited will become part of the promoter group of Kay Power and Paper Limited. The company has provided specific assurances regarding the impact of this corporate restructuring:

• The transmission constitutes a non-market transmission pursuant to the approved scheme of demerger
• No change in control or management of the company will occur
• The aggregate shareholding of the promoter and promoter group will remain unchanged

Regulatory Compliance

The demerger scheme received approval from the Regional Director, Western Region, Mumbai, and became operative from the appointed date of April 1, 2025. The effective date of the scheme is February 2, 2026. The company confirmed that apart from this specific transmission, there are no other changes in the promoters and promoter group structure.

Kay Power & Paper Limited , a company in the paper manufacturing sector, has released its unaudited financial results for the second quarter and half-year ended September 30. The company reported a slight decrease in revenue and profit compared to the same period last year.

Key Financial Highlights

Revenue and Profitability

For the quarter ended September 30, Kay Power & Paper Limited reported revenue from operations of Rs. 762.57 lacs, marking a 13.3% decrease from Rs. 879.78 lacs in the corresponding quarter of the previous year. The company's net profit for the quarter stood at Rs. 1.96 lacs, down from Rs. 2.91 lacs in Q2 of the previous year.

The half-yearly results also reflected a similar trend. Revenue for H1 was Rs. 1474.30 lacs, compared to Rs. 1893.48 lacs in H1 of the previous year, representing a 22.1% decline. Net profit for the half-year period decreased to Rs. 3.17 lacs from Rs. 7.24 lacs in the previous year.

Operational Performance

The company's cost of materials consumed for Q2 was Rs. 480.94 lacs, lower than the previous year's figure, which aligns with the reduced revenue. Employee benefit expenses saw a slight increase to Rs. 39.08 lacs in Q2 from Rs. 31.28 lacs in Q2 of the previous year.

Balance Sheet Overview

As of September 30, Kay Power & Paper Limited reported total assets of Rs. 6482.14 lacs, a slight increase from Rs. 6232.91 lacs as of March 31. The company's equity share capital remained unchanged at Rs. 2209.00 lacs.

Subsidiary Update

The company has a wholly owned subsidiary, Satara Aerospace and Defence Industrial Park Pvt. Ltd., which was incorporated on June 5, 2024. However, this subsidiary has not yet commenced operations, and therefore, the consolidated financial results remain the same as the standalone results.

Management Commentary

The Board of Directors approved these results at their meeting held on November 12. The company has not provided any specific commentary on the factors affecting the quarterly performance or future outlook in the available information.

Conclusion

While Kay Power & Paper Limited has managed to maintain profitability, the company faces challenges with declining revenues. The marginal profit in a difficult operating environment suggests that the company may need to focus on cost management and operational efficiency to improve its financial performance in the coming quarters.