Chennai Ferrous Industries Reports Net Loss in Q2 Amid Revenue Decline

Chennai Ferrous Industries Limited , a company operating in the coal trading segment, has reported a net loss for the quarter ended September 30, according to its recently released financial results.

Financial Performance

The company's financial performance for Q2 shows a significant downturn compared to the same period last year:

Particulars (in Rs. Lacs)	Q2	Q2 Previous Year	Change (%)
Revenue from Operations	5,650.60	6,859.08	-17.62%
Net Profit/(Loss)	(14.48)	97.05	-114.92%
EPS (Basic & Diluted)	(0.40)	2.69	-114.87%

Chennai Ferrous Industries reported a net loss of Rs 14.48 lacs for the quarter, compared to a net profit of Rs 97.05 lacs in the corresponding quarter of the previous year. This represents a significant decline in the company's bottom line.

The revenue from operations also saw a decrease, falling to Rs 5,650.60 lacs from Rs 6,859.08 lacs in the same quarter of the previous year, marking a 17.62% reduction year-over-year.

Half-Year Performance

For the half-year period, the company's performance showed some resilience:

Particulars (in Rs. Lacs)	H1	H1 Previous Year	Change (%)
Revenue from Operations	12,571.50	14,155.13	-11.19%
Net Profit	218.28	270.93	-19.43%
EPS (Basic & Diluted)	6.06	7.52	-19.41%

Despite the challenging quarter, Chennai Ferrous Industries managed to achieve a net profit of Rs 218.28 lacs for the half-year, although this was lower than the Rs 270.93 lacs reported in the corresponding period last year.

Operational Highlights

The company operates in coal trading as its single business segment. The Board of Directors approved these unaudited financial results in their meeting held on November 12.

Balance Sheet Position

As of September 30, the company's balance sheet shows:

Particulars (in Rs. Lacs)	Current Period	Previous Period
Total Assets	7,893.74	8,062.09
Total Equity	5,423.67	5,205.38
Total Liabilities	2,470.07	2,856.69

The company's total assets stood at Rs 7,893.74 lacs, showing a slight decrease from Rs 8,062.09 lacs as of the previous period. However, the total equity increased to Rs 5,423.67 lacs from Rs 5,205.38 lacs, indicating some improvement in the company's net worth.

Cash Flow Position

The cash flow statement for the half-year reveals:

Net Cash Flow from Operating Activities: Rs 446.00 lacs
Net Cash Flow from Financing Activities: Rs (166.83) lacs
Net Increase in Cash & Cash Equivalents: Rs 279.18 lacs

The company's cash and cash equivalents increased from Rs 49.57 lacs at the beginning of the period to Rs 328.75 lacs at the end of the current period.

Chennai Ferrous Industries Limited's financial results for the recent quarter reflect the challenges faced by the company in the coal trading sector. While the quarterly performance shows a decline, the half-yearly results indicate that the company has managed to maintain profitability despite the adverse conditions. Investors and stakeholders will be watching closely to see how the company navigates these challenges in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.51%	-9.23%	-9.06%	+3.63%	-12.92%	+2,437.00%

Chennai Ferrous Industries Limited , a prominent player in the coal trading sector, has reported a significant increase in its net profit for the first quarter. The company's financial performance and strategic decisions were disclosed in its recent board meeting.

Financial Highlights

Chennai Ferrous Industries witnessed a robust 33.9% year-on-year growth in its net profit for the quarter. The company's net profit stood at Rs 232.77 crore, compared to Rs 173.88 crore in the same period last year. This impressive growth comes despite a slight dip in revenue.

Particulars	Q1 (Current)	Q1 (Previous)	YoY Change
Net Profit (Rs in crore)	232.77	173.88	+33.9%
Revenue from Operations (Rs in crore)	6,920.90	7,381.92	-6.2%
Earnings Per Share (Rs)	6.46	4.82	+34.0%

The company's revenue from operations experienced a marginal decline of 6.2%, standing at Rs 6,920.90 crore for the quarter, compared to Rs 7,381.92 crore in the previous year's corresponding period. Despite this, Chennai Ferrous Industries managed to significantly improve its bottom line, reflecting enhanced operational efficiency.

Earnings per share (EPS) also saw a substantial increase, rising to Rs 6.46 from Rs 4.82 year-on-year, marking a 34% improvement.

Appointment of New Auditors

In a strategic move to strengthen its corporate governance, the Board of Directors approved the appointment of new auditors across various domains:

Statutory Auditors

M/s. Aayush Bohra A & Co., Chartered Accountants, have been appointed for a five-year term from the 15th to the 20th Annual General Meeting. The firm brings over a decade of experience in professional audit, assurance, and advisory services.

Secretarial Auditors

M/s. M K Madhavan & Associates, Practicing Company Secretaries, have been appointed for five years from April 2025 to March 2030. The firm specializes in IPO readiness, SEBI compliance, Companies Act advisory, and investor governance for listed and large unlisted entities.

Internal Auditors

M/s. N N Kumar & Associates, Chartered Accountants, have been appointed for the financial year 2025-26. The firm has extensive experience in providing audit and assurance services to multinational companies, corporates, and high-net-worth individuals.

All these appointments are subject to shareholder approval at the upcoming Annual General Meeting.

Business Segment

Chennai Ferrous Industries continues to operate in coal trading as its single business segment, as per the Indian Accounting Standard 108.

The company's strong performance, coupled with its strategic appointments, signals its commitment to maintaining robust financial health and enhancing corporate governance practices. As Chennai Ferrous Industries moves forward, investors and stakeholders will be keenly watching how these changes translate into long-term growth and value creation.