Triochem Products Limited , a Mumbai-based company, has announced a significant corporate action involving the sale of its non-core assets. The Board of Directors has approved the sale of immovable properties and plant & machinery valued at Rs 11.81 crore across three separate transactions. This move is aimed at monetizing unused assets and redirecting resources towards new business ventures and strategic initiatives.

Asset Sale Details

The approved sale involves the following transactions:

Key Points of the Transaction

• The assets being sold represent 100% of the total book value but contributed 0% to the company's turnover in the past financial year.
• The company describes these as non-core assets that are currently not utilized in its operations.
• The sale is subject to shareholder approval and is expected to be completed by January 31, 2026.
• The consideration for the proposed sale will be paid in cash.

Related Party Transactions

It's important to note that this sale constitutes a Related Party Transaction under Section 188 of the Companies Act, 2013 and Regulation 23 of the SEBI Listing Regulations:

1. G Amphray Laboratories, the partnership firm purchasing assets worth Rs 8.06 crore, includes directors and promoters of Triochem Products as partners.
2. Rajesh Ramu Deora, who is purchasing a residential flat for Rs 3.75 crore, is a director of the company.

The company has stated that these transactions are being conducted at "arm's length."

Corporate Governance Measures

In light of these transactions, the Board has also approved:

1. Amendments to Related Party Transaction policies
2. A postal ballot process with a cut-off date of October 25, 2025

Potential Impact and Rationale

The company has provided the following rationale for the asset sale:

1. Monetization of non-core, unutilized assets
2. Utilization of proceeds for new business ventures and strategic initiatives
3. No adverse impact expected on the company's operations

The Board assures that the transaction complies with the provisions of the Companies Act, 2013, SEBI Listing Regulations, and other applicable laws. No regulatory approvals are required for the proposed transaction.

Investors and stakeholders should note that while this move aims to optimize the company's asset portfolio, the actual impact on Triochem Products' future performance and strategic direction remains to be seen. As always, it is advisable to conduct thorough research and consider multiple factors before making investment decisions.

Triochem Products Limited, a chemical manufacturing company, has reported a significant increase in its net loss for the first quarter. The company's financial results, approved by the Board on August 14, reveal a challenging start to the new financial year.

Financial Performance

The company reported a net loss of Rs. 15.24 crore for Q1, which is substantially higher than the Rs. 9.62 crore loss recorded in the same quarter of the previous year. This represents a year-on-year increase in losses of about 58.42%. The loss has also widened considerably from the previous quarter, which stood at Rs. 2.82 crore.

Revenue and Operations

Despite the increased losses, Triochem Products' total income from operations remained relatively stable. The company reported a total income of Rs. 22.10 crore for Q1, compared to Rs. 22.97 crore in the same quarter of the previous year, indicating a marginal decrease of about 3.79% year-on-year. However, this figure represents a significant drop from the previous quarter's revenue of Rs. 32.47 crore.

Key Financial Metrics

Earnings Per Share

The company's earnings per share (EPS) for Q1 stood at negative Rs. 1.25. While this represents a loss, it is an improvement from the negative Rs. 18.44 EPS reported in the previous quarter.

Total Comprehensive Income

Interestingly, despite the net loss, Triochem Products reported a total comprehensive income of Rs. 89.27 crore for Q1. This is a substantial improvement from the total comprehensive loss of Rs. 45.67 crore in the previous quarter.

Board Approval and Accounting Standards

The unaudited financial results for Q1 were approved by the company's Board of Directors on August 14. These results have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.

Disclosure Compliance

In compliance with Regulation 47 of SEBI (LODR) Regulations, 2015, Triochem Products Limited has published the extract of its unaudited financial results for the quarter ended June 30 in the newspapers Navshakti and Free Press Journal on August 15.

The company's performance in Q1 indicates ongoing challenges, with widening losses despite stable revenue. However, the positive total comprehensive income suggests there might be other factors at play, such as non-operational gains or accounting adjustments, which have contributed positively to the overall financial picture. Investors and stakeholders will likely be watching closely to see how Triochem Products addresses these challenges and works towards improving its bottom line in the coming quarters.