CHL Limited Reports Q1 Results: Standalone Profit Rises Amid Leadership Changes
CHL Limited announced Q1 financial results with standalone revenue up 6% to Rs. 1,971.05 crore and profit up 29% to Rs. 504.01 crore. However, consolidated results showed a loss of Rs. 488.67 crore, including currency exchange losses from its subsidiary. The board appointed Mr. Luv Malhotra as Chairman for the upcoming AGM and made changes in company leadership. CHL continues to face legal challenges related to a loan taken by its subsidiary, with a One Time Settlement of USD 34 million under implementation.
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CHL Limited , a prominent player in the hospitality sector, has announced its financial results for the first quarter ended June 30, along with several key board decisions. The company reported a mixed financial performance, with standalone operations showing improvement while consolidated results faced challenges.
Financial Performance
CHL Limited's standalone operations demonstrated robust growth in the first quarter. The company reported a standalone revenue from operations of Rs. 1,971.05 crore, marking a 6% increase from Rs. 1,858.61 crore in the same quarter of the previous year.
The standalone profit for the period saw a significant jump, rising to Rs. 504.01 crore compared to Rs. 390.71 crore in the corresponding quarter last year, representing a 29% year-on-year increase.
However, the consolidated results painted a different picture. The company reported a comprehensive loss of Rs. 488.67 crore for the quarter on a consolidated basis. This loss includes currency exchange fluctuation losses of Rs. 406.65 crore from its subsidiary, CJSC CHL International.
Key Financial Metrics
| Particulars (in Rs. crore) | Q1 (Standalone) | Q1 (Standalone) Previous Year | Q1 (Consolidated) |
|---|---|---|---|
| Revenue from Operations | 1,971.05 | 1,858.61 | 3,144.04 |
| Other Income | 432.00 | 309.40 | 460.62 |
| Total Income | 2,403.05 | 2,168.00 | 3,604.66 |
| Total Expenses | 1,722.66 | 1,645.16 | 3,510.31 |
| Profit/(Loss) Before Tax | 680.39 | 522.84 | 94.36 |
| Net Profit/(Loss) | 504.01 | 390.71 | (82.02) |
Board Decisions and Leadership Changes
The Board of Directors, in its meeting held on August 12, made several important decisions:
Mr. Luv Malhotra, the Managing Director, was selected as the Chairman for the board meeting and will also chair the upcoming 46th Annual General Meeting (AGM).
The board approved the annual report for the previous financial year.
New appointments were made for secretarial and internal auditors.
Mr. Dinesh Kumar Maurya resigned as Company Secretary and compliance officer, effective August 12.
Mr. Ayush Rai was appointed as the new Company Secretary and compliance officer, effective August 13.
Ongoing Legal Matters
CHL Limited continues to face legal challenges related to a loan taken by its subsidiary, CJSC CHL International, from EXIM Bank. The company, as a guarantor, is involved in ongoing litigation with cases pending in the Supreme Court of India and the Debt Recovery Tribunal, Delhi.
A One Time Settlement (OTS) of USD 34 million was executed with EXIM Bank and is currently under implementation. The Economic Court of Dushanbe has crystallized the liability against the borrowers and guarantors to this amount.
Conclusion
While CHL Limited's standalone operations show promising growth, the consolidated results reflect the challenges faced by its international subsidiary. The company's performance in the coming quarters will be closely watched by investors, particularly in light of the ongoing legal proceedings and the implementation of the One Time Settlement with EXIM Bank.
Historical Stock Returns for CHL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.45% | -7.86% | -10.53% | +6.68% | -16.66% | +380.52% |
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