Commercial Syn Bags Limited (COMSYN) has reported a remarkable 405% year-on-year increase in standalone net profit for the quarter ended June 30. The company's financial performance showcases significant growth across key metrics, along with strategic moves to strengthen its global presence.

Financial Highlights

COMSYN's standalone net profit for Q1 stood at ₹505.99 lakhs, a substantial rise from ₹100.18 lakhs in the same quarter last year. The company's revenue from operations also saw a healthy increase, climbing to ₹8,938.03 lakhs from ₹7,511.90 lakhs year-over-year, marking a growth of 19.00%.

On a consolidated basis, the company's performance was equally impressive:

• Net profit rose to ₹555.40 lakhs from ₹193.49 lakhs, representing a 187.00% increase
• Consolidated revenue grew to ₹9,051.32 lakhs from ₹7,688.94 lakhs, up by 17.70%

Segment-wise Performance

COMSYN operates in three main segments:

1. Manufacturing of FIBC, bulk bags, woven sacks, technical textiles, and other related products
2. Trading of granules
3. Solar power generation for captive consumption

The manufacturing segment, which is the company's primary focus, reported revenue of ₹8,889.08 lakhs for the quarter, compared to ₹7,442.25 lakhs in the same period last year.

Strategic Acquisitions and Expansions

During the quarter, COMSYN made significant moves to strengthen its market position:

1. Increased Stake in UK Subsidiary: The company acquired an additional 1% stake in Smartlift Bulk Packaging Limited, UK for GBP 43,500. This strategic move brings COMSYN's total holding in the UK subsidiary to 50%, potentially allowing for greater control and synergies in international operations.

2. Acquisition through Subsidiary: COMSYN's wholly-owned subsidiary, Comsyn India Private Limited, acquired 100% equity shares of Erawat Vegcap Private Limited for ₹551 lakhs. This acquisition is expected to expand the company's product portfolio and market reach.

Other Developments

• The company has a solar power project of 1.0 MW for captive consumption, contributing to its sustainability efforts and potentially reducing energy costs.
• COMSYN received approval for issuing convertible warrants on a preferential basis, with 20,00,000 warrants at ₹72 each allotted to promoters and the promoter group. The company has received 25% upfront money (₹360 lakhs) and utilized it as per the stated objectives.

Management Commentary

Anil Choudhary, Chairman and Managing Director of Commercial Syn Bags Limited, stated, "We are pleased with our strong start to the fiscal year. The significant growth in our profitability and revenue demonstrates the resilience of our business model and the increasing demand for our products. Our strategic acquisitions and expansions are aimed at strengthening our market position and creating long-term value for our shareholders."

Commercial Syn Bags Limited continues to focus on its core manufacturing segment while exploring opportunities for growth and diversification. The company's robust financial performance and strategic initiatives position it well for sustained growth in the coming quarters.

Commercial Syn Bags Limited (COMSYN) has announced a significant update to its subsidiary's recent acquisition plans. Comsyn India Private Limited, a wholly-owned subsidiary of Commercial Syn Bags, has executed an addendum to its Share Purchase Agreement (SPA) with Erawat Pharma Limited, revising the terms of its acquisition of Erawat Vegcap Private Limited.

Key Details of the Revised Agreement

• Revised Share Price: The consideration price per equity share of Erawat Vegcap has been increased from ₹52.60 to ₹58.00.
• Total Shares: The agreement covers a total of 9,50,000 equity shares.
• New Total Consideration: The revised total consideration now stands at ₹5.51 crore, up from the original amount.
• Completion Timeline: The acquisition is expected to be completed on or before May 15, 2025.

Payment Structure

The payment for this acquisition will be made in stages:

1. An initial payment of ₹1.25 crore was made on April 12, 2025.
2. An additional ₹12.83 lakh will be paid as part of the revised upfront payment, totaling ₹1.38 crore (25% of the total consideration).
3. The remaining balance will be paid by May 15, 2025, through normal banking channels.

Strategic Implications

Upon completion of this acquisition, Erawat Vegcap Private Limited will become a wholly-owned subsidiary of Comsyn India Private Limited, with Commercial Syn Bags Limited as the ultimate holding company. This move aligns with Commercial Syn Bags' broader objectives of business expansion and diversification.

About Erawat Vegcap

It's worth noting that while Erawat Vegcap has not generated any turnover in the past three years, its business objects align with those of Comsyn India Private Limited and Commercial Syn Bags Limited.

Regulatory Compliance

Commercial Syn Bags has made this announcement in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024. The company has confirmed that this transaction does not fall under related party transactions, and no governmental or regulatory approvals are required for the acquisition.

This strategic move by Commercial Syn Bags, through its subsidiary, demonstrates the company's commitment to growth and expansion in the plastic products, packaging, and healthcare sectors.