Vardhman Polytex Limited , a prominent player in the textile industry, has announced the complete utilization of funds raised through its Rights Issue in October 2024 and Preferential Issue in March 2025. The company made this declaration for the quarter ended March 31, 2025, marking a significant milestone in its financial management and transparency efforts.

Fund Utilization and Reporting

The company stated that it would discontinue submitting the Statement of Deviation/Variation for fund usage from the quarter ending June 30, 2025 onwards. This decision comes as a result of the full deployment of the raised capital, indicating that the funds have been used as per the intended purposes outlined during the issuance.

Audit Committee Oversight

Vardhman Polytex's Audit Committee has taken note of this development, ensuring proper governance and oversight of the fund utilization process. This step aligns with the company's commitment to maintaining transparency and adhering to regulatory requirements.

Financial Performance

While the primary news focuses on the fund utilization, it's worth noting some key financial highlights from the company's recent performance:

The company's financial results for the quarter ended June 30, 2025, show a revenue from operations of ₹63.28 crore, compared to ₹89.76 crore in the same quarter of the previous year. The net profit after tax stood at ₹1.94 crore, down from ₹9.85 crore year-over-year.

Segment Performance

Vardhman Polytex operates primarily in the textiles segment, which contributed ₹63.28 crore to the total revenue for the quarter. The company also has a presence in the real estate sector, although no significant revenue was reported from this segment during the period.

Conclusion

The complete utilization of funds raised through the Rights and Preferential Issues demonstrates Vardhman Polytex's efficient capital allocation and commitment to its growth strategies. As the company moves forward, stakeholders will be keen to observe how these investments translate into operational performance and financial results in the coming quarters.

Vardhman Polytex Limited , a prominent player in the textile industry, has announced a strategic shift in its operations, marking a significant change in the company's direction. The company has decided to cease operations at its manufacturing unit located in Focal Point, Ludhiana, Punjab, as part of a broader strategy to explore real estate opportunities and address financial challenges.

Closure of Manufacturing Operations

In a filing to the National Stock Exchange of India and BSE Limited on March 10, 2025, Vardhman Polytex revealed that its board of directors has approved the closure of the Ludhiana manufacturing unit. The company plans to wind up operations at this facility by March 31, 2025, signaling the end of an era for its production activities at this location.

Strategic Shift Towards Real Estate

The primary motivation behind this move is the company's intention to monetize the real estate potential of the land associated with the Ludhiana plant. This strategic decision is part of Vardhman Polytex's ongoing efforts to:

• Augment funds for repaying outstanding liabilities to lenders
• Support the company's future growth initiatives
• Streamline the organization's cash flows

Financial Impact

The closure of the Ludhiana unit is expected to have a significant impact on Vardhman Polytex's financial structure. According to the company's disclosure:

This data indicates that the Ludhiana unit contributed to nearly 80% of the company's operational revenue in the last financial year ending March 31, 2024.

It's worth noting that the company reported a negative net worth of Rs. 36,103.76 lakh as of the last financial year, underscoring the financial challenges that may have prompted this strategic shift.

Management's Perspective

The management of Vardhman Polytex views this move as a necessary step to address the company's financial situation and explore new avenues for growth. By monetizing the real estate assets, the company aims to improve its financial position and potentially pivot towards more profitable ventures.

Looking Ahead

As Vardhman Polytex prepares to close its Ludhiana manufacturing operations, stakeholders will be keenly watching how the company navigates this transition. The success of its real estate monetization efforts and the impact on its overall business model will be crucial factors in determining the company's future trajectory in the highly competitive textile and real estate sectors.

This development marks a significant turning point for Vardhman Polytex, as it shifts from its traditional manufacturing focus to exploring opportunities in the real estate market. The coming months will be critical as the company implements this strategic change and works towards stabilizing its financial position.