Chandra Prabhu International Reports Narrowed Q2 Loss, Issues Bonus Shares
Chandra Prabhu International Limited (CPIL) reported a reduced net loss of Rs 81.67 lakh for Q2, down 80% year-over-year. Revenue decreased by 43.58% to Rs 7,719.41 lakh. The Coal Division saw increased revenue, while the Metal Division experienced a decline. CPIL announced a 1:2 bonus share issuance. The company reported an exceptional gain of Rs 222.19 lakh from land sale. Half-year results showed a total income of Rs 35,257.71 lakh and a net loss of Rs 324.56 lakh.
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Chandra Prabhu International Limited (CPIL), a company engaged in coal, scrap, and agri trading, has reported a significant reduction in its net loss for the quarter ended September 30. The company also announced the issuance of bonus shares, signaling confidence in its financial position despite challenging market conditions.
Financial Performance
CPIL reported a net loss of Rs 81.67 lakh for Q2, a substantial improvement from the net loss of Rs 406.14 lakh in the same quarter of the previous year. This represents an 80% reduction in losses year-over-year.
The company's financial results for Q2 are summarized in the table below:
| Particulars (in Rs. lakh) | Q2 Current | Q2 Previous | Change (%) |
|---|---|---|---|
| Revenue from Operations | 7,719.41 | 13,681.77 | -43.58% |
| Total Income | 7,743.31 | 13,719.21 | -43.56% |
| Total Expenses | 7,883.93 | 13,680.09 | -42.37% |
| Net Profit/(Loss) | (81.57) | (39.12) | +108.51% |
Despite a significant decline in revenue, CPIL managed to improve its bottom line through cost management and operational efficiencies.
Segment Performance
CPIL operates through two main divisions: Coal and Metal. The performance of these segments in Q2 was as follows:
- Coal Division: Revenue increased to Rs 6,360.82 lakh from Rs 3,583.58 lakh in the previous year's Q2.
- Metal Division: Revenue dropped to Rs 1,358.59 lakh from Rs 10,085.57 lakh year-over-year.
The Coal Division reported a loss of Rs 526.34 lakh, while the Metal Division posted a profit of Rs 471.39 lakh before tax and interest.
Bonus Share Issuance
CPIL announced the issuance of bonus shares in the ratio of 1:2 on September 29. This means shareholders will receive one additional share for every two shares held.
Half-Year Results
For the half-year ended September 30, CPIL reported:
- Total income of Rs 35,257.71 lakh, down from Rs 42,946.43 lakh in the previous year's corresponding period.
- Net loss of Rs 324.56 lakh, compared to a net loss of Rs 80.80 lakh in the previous year's corresponding period.
Balance Sheet Highlights
As of September 30, CPIL's financial position showed:
- Total assets of Rs 12,048.96 lakh, a decrease from Rs 14,470.94 lakh as of March 31.
- Equity share capital increased to Rs 554.70 lakh from Rs 369.80 lakh, reflecting the bonus share issuance.
- Current liabilities reduced to Rs 7,418.28 lakh from Rs 9,482.60 lakh at the end of the previous fiscal year.
Exceptional Item
The company reported an exceptional gain of Rs 222.19 lakh in Q2, which was attributed to the profit on sale of land located in Muzaffarnagar.
Outlook
While CPIL faces challenges in its operating environment, as evidenced by the decline in revenue, the company's efforts to reduce losses and strengthen its balance sheet may be seen as positive steps. The issuance of bonus shares could be interpreted as management's confidence in the company's future prospects.
Investors and stakeholders will likely monitor CPIL's performance in the coming quarters to assess the effectiveness of its strategies in navigating the current market conditions and returning to profitability.
Historical Stock Returns for Chandra Prabhu International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.71% | +1.71% | -5.04% | +3.31% | -33.76% | +258.61% |
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