Celebrity Fashions Limited , a prominent player in the fashion industry, has released its unaudited financial results for the first quarter, revealing a mixed financial performance and announcing changes in its corporate structure.

Financial Performance

The company reported a net loss of Rs 6.73 crores for the quarter, showing an improvement from the Rs 8.56 crores loss recorded in the same quarter of the previous year. Despite the continued losses, there are signs of recovery in the company's operations:

• Revenue from operations increased to Rs 40.67 crores, up from Rs 36.24 crores year-over-year, indicating a growth of 12.2%.
• The cost of material consumed rose to Rs 20.21 crores, compared to Rs 14.86 crores in the same quarter last year, reflecting increased production activities.
• Employee benefits expense also saw an increase, reaching Rs 18.65 crores, up from Rs 14.43 crores in the corresponding quarter.

However, the company continues to face challenges, with accumulated losses of Rs 45.87 crores. This has raised concerns about the company's going concern status, which the auditors have noted in their review report.

Financial Highlights

Earnings Per Share

The basic and diluted earnings per share (EPS) for the quarter stood at negative Rs 1.13, reflecting the company's continued losses.

Appointment of New Secretarial Auditors

In a significant corporate development, Celebrity Fashions' Board of Directors has approved the appointment of BP & Associates as the company's Secretarial Auditors. The appointment is for a period of five consecutive years, subject to shareholder approval at the upcoming 36th Annual General Meeting.

BP & Associates brings over two decades of experience in various professional services, including:

• Corporate Law
• Capital Markets & Securities Laws
• Foreign Investment & Exchange Control
• NBFC Advisory
• Intellectual Property Rights
• Mergers & Acquisitions
• Corporate Legal Compliance
• Audit & Assurance

This appointment is expected to strengthen the company's corporate governance practices and ensure compliance with regulatory requirements.

Looking Ahead

While Celebrity Fashions Limited continues to face financial challenges, the increase in revenue and reduction in net loss compared to the previous year suggest potential signs of improvement. The company's management and newly appointed auditors will likely focus on strategies to further reduce losses and drive growth in the coming quarters.

Investors and stakeholders will be closely watching the company's performance in subsequent quarters to assess its ability to overcome current financial hurdles and return to profitability.

Celebrity Fashions Limited , a prominent player in the fashion industry, has announced significant operational changes aimed at streamlining its manufacturing processes in Chennai. The company plans to consolidate its operations by closing down one of its manufacturing units, a move that is expected to enhance operational efficiency.

Plant Closure and Merger

According to a recent board meeting outcome, Celebrity Fashions has decided to close its manufacturing and washing plant located at No.14, Alamathi Road, Vellanur, Chennai – 600062. The operations from this facility will be merged with the company's existing manufacturing facilities and washing plant at SDF-IV, 3rd main road, MEPZ-SEZ, Tambaram, Chennai – 600045.

Financial Impact

The Vellanur plant, which is slated for closure, has been a significant contributor to the company's revenue. As per the details provided:

Strategic Considerations

The company cited "strategic consideration" as the primary reason for this consolidation move. By merging the operations of the Vellanur plant with its existing facilities in Tambaram, Celebrity Fashions aims to optimize its production capabilities and potentially reduce operational costs.

Management Changes

In addition to the plant consolidation, the board has also approved a key management appointment. Mr. S. Vivekanandan has been appointed as the new Company Secretary and Compliance Officer, effective July 29, 2025. Mr. Vivekanandan, an Associate Member of the Institute of Company Secretaries of India (Membership No: A75249), brings valuable experience in corporate laws and compliance functions of listed companies to his new role.

Looking Ahead

The consolidation of Chennai operations marks a significant step for Celebrity Fashions in its efforts to streamline production and improve operational efficiency. As the company moves forward with these changes, stakeholders will be keen to observe the impact on overall performance and productivity in the coming months.

Celebrity Fashions Limited continues to adapt its strategies in response to the dynamic fashion industry landscape, focusing on optimizing its operational footprint in Chennai.