Comfort Intech Limited , a diversified company with interests in trading, liquor manufacturing, financing, and real estate, has reported robust financial results for the first quarter, along with significant corporate developments.

Financial Highlights

Comfort Intech Limited has announced impressive financial results for the quarter:

On a consolidated basis, the company's net sales stood at Rs. 2,746.39 lakhs, with a total income of Rs. 2,888.23 lakhs. The profit after tax showed a significant jump to Rs. 510.76 lakhs, translating to a basic earnings per share (EPS) of Rs. 0.16.

Segment-wise Performance

The company's performance across various segments is as follows:

1. Trading in Goods: Revenue of Rs. 793.17 lakhs
2. Liquor Division: Revenue of Rs. 1,873.92 lakhs
3. Financing: Revenue of Rs. 68.25 lakhs
4. Leasing of Immovable Properties: Revenue of Rs. 11.05 lakhs

The liquor division emerged as the strongest contributor to the company's revenue for the quarter.

Expansion into Agricultural Commodities

In a strategic move to diversify its business portfolio, Comfort Intech's Board of Directors has approved the alteration of the company's Memorandum of Association (MOA). The amendment aims to include a clause specifically pertaining to the company's business in agricultural commodities. This decision is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Dividend Announcement and AGM Details

The Board has declared a final dividend of Rs. 0.07 per equity share (7% of the face value), subject to shareholder approval at the AGM.

Key dates announced by the company:

• Record Date: September 18 (for AGM voting and dividend eligibility)
• Annual General Meeting: September 25 (to be held via video conferencing)

Corporate Governance and Compliance

In line with regulatory requirements, the company has set August 10 as the date for reopening the trading window for insiders, following the board meeting and results announcement.

The financial results have been reviewed by the Audit Committee and approved by the Board of Directors. M/s. A. R. Sodha & Co., the company's statutory auditors, have conducted a limited review of the financial statements.

Comfort Intech Limited continues to demonstrate strong financial performance and strategic growth initiatives, positioning itself for further expansion in diverse sectors including the newly proposed agricultural commodities business.

Comfort Intech Limited has taken a significant step in resolving a dispute with Orient Electric Limited by invoking arbitration proceedings. The conflict stems from an alleged breach of a Vendor Agreement executed on April 20, 2024, which established a business association between the two companies for online sales.

Dispute Details

According to Comfort Intech's filing with the BSE, the company alleges that Orient Electric has violated the terms of their agreement. Despite attempts to reach an amicable resolution, the parties have been unable to settle their differences, prompting Comfort Intech to initiate arbitration.

Arbitration Process

The arbitration will be conducted under Clause 21(D) of the Vendor Agreement, following the procedures set forth by the Delhi International Arbitration Centre in New Delhi. This move aligns with the dispute resolution mechanism outlined in the original agreement between the two companies.

Financial Implications

While the exact quantum of claims remains undetermined, Comfort Intech's board of directors has expressed that the financial implications resulting from the alleged breach may be material. The specific amounts and details of the claims will be established during the course of the arbitration proceedings.

Regulatory Compliance

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Comfort Intech has duly informed the BSE about this development. The company has provided the necessary details as required under the regulations, ensuring transparency with its stakeholders.

Looking Ahead

As the arbitration process unfolds, investors and market watchers will be keenly observing its progress and potential impact on both Comfort Intech and Orient Electric. The outcome of this dispute could have significant implications for the business relationship between the two companies and their respective operations in the online sales sector.

Shareholders and interested parties can find more information about this development on Comfort Intech's website at www.comfortintech.com .