Chadha Papers Reports Rs 471.38 Lakh Loss in Q1, Revenue Declines
Chadha Papers Limited reported a net loss of Rs 471.38 lakhs in Q1, compared to a profit of Rs 318.39 lakhs in the same period last year. Revenue from operations fell by 21.76% to Rs 12,231.92 lakhs. Total expenses decreased by 15.39%, but not enough to offset the revenue decline. EPS turned negative at Rs (4.62). The company's auditor noted an expired lease for part of the factory land, which management is working to renew.
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Chadha Papers Limited , a paper manufacturing company, has reported a significant downturn in its financial performance for the first quarter. The company's unaudited standalone financial results, approved by the Board of Directors on August 14, reveal a net loss and a decline in revenue compared to the same period last year.
Financial Highlights
| Particulars (Rs. in Lakhs) | Q1 Current | Q1 Previous | % Change |
|---|---|---|---|
| Revenue from Operations | 12,231.92 | 15,634.61 | -21.76% |
| Total Income | 12,293.41 | 15,702.28 | -21.71% |
| Total Expenses | 12,919.55 | 15,269.83 | -15.39% |
| Net Profit/(Loss) | (471.38) | 318.39 | -248.05% |
| EPS (Rs.) | (4.62) | 3.12 | -248.08% |
Revenue and Profitability
Chadha Papers experienced a significant decline in its revenue from operations, which fell by 21.76% to Rs 12,231.92 lakhs from Rs 15,634.61 lakhs in the corresponding quarter of the previous year. The company's total income also decreased by 21.71% to Rs 12,293.41 lakhs.
The paper manufacturer reported a net loss of Rs 471.38 lakhs for the quarter, a stark contrast to the profit of Rs 318.39 lakhs recorded in the same period last year. This represents a substantial 248.05% decline in profitability.
Expenses and Operating Performance
Despite the revenue decline, Chadha Papers managed to reduce its total expenses by 15.39% to Rs 12,919.55 lakhs, down from Rs 15,269.83 lakhs in the previous year's corresponding quarter. However, this reduction in expenses was not sufficient to offset the sharp decline in revenue, resulting in the reported loss.
The company's earnings per share (EPS) turned negative at Rs (4.62) for the quarter, compared to a positive EPS of Rs 3.12 in the previous year's corresponding quarter.
Other Developments
The Board of Directors approved both standalone and consolidated unaudited financial results in a meeting held on August 14. The company's auditor noted that a lease for part of the factory land at Bilaspur, where the paper manufacturing unit is located, has expired. This lease, which belonged to promoters and family members, was for a period of 30 years since 1991. The management is reportedly working on renewing the lease and has not received any eviction notice.
Consolidated Results
The consolidated financial results mirror the standalone figures, as the company's wholly-owned subsidiary, Manorama Paper Mills Limited, did not have any operations during the quarter.
Chadha Papers Limited continues to face challenges in the current economic environment, as evidenced by its quarterly results. The company will need to focus on cost management and revenue growth strategies to improve its financial performance in the coming quarters.
Historical Stock Returns for Chadha Paper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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| 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
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