Eurotex Industries and Exports Limited, a textile manufacturer, has reported a significant turnaround in its financial performance for the quarter ended September 30, 2025, despite the closure of its manufacturing operations at Kolhapur. The company's strategic decisions and asset sales have contributed to this positive outcome.

Financial Highlights

The company reported a profit of ₹181.10 lakhs for the quarter ended September 30, 2025, compared to a loss of ₹307.49 lakhs in the same period last year. For the half-year, Eurotex posted a profit of ₹62.00 lakhs, a significant improvement from the loss of ₹307.51 lakhs in the previous year.

Asset Sales and Operational Changes

A major contributor to the company's other income was the sale of plant and machinery and freehold land at Kolhapur, which generated ₹332.73 lakhs during the quarter. This strategic move follows the company's decision to discontinue its manufacturing operations at Kolhapur, which have been non-operational since March 2019.

Corporate Actions and Future Plans

Eurotex Industries has taken several significant steps to address its financial situation:

1. Plant Closure: The company formally announced the closure of its Kolhapur manufacturing plants on March 30, 2022, due to persistent labor issues and power disconnection.

2. Debt Settlement: Management has settled dues of lender banks by borrowing from promoter group companies, improving the company's financial position.

3. Future Development: The company plans to undertake further development of the available land area at Kolhapur in the near future, potentially opening new revenue streams.

Financial Position and Going Concern

Despite the positive quarterly results, it's important to note that the company's net worth remains eroded. However, the management has prepared the financial statements on a going concern basis, citing the following reasons:

• Settlement of bank dues
• Plans for land development at Kolhapur
• Positive cash flow from asset sales

The company's cash and cash equivalents have increased to ₹32.87 lakhs from ₹4.62 lakhs, indicating an improvement in liquidity.

Legal Matters

Eurotex is currently involved in legal proceedings regarding labor issues. The company has filed a writ petition before the Hon'ble High Court, Mumbai, following a Supreme Court directive. Management expects a favorable decision based on expert legal advice.

Conclusion

While Eurotex Industries and Exports Limited faces challenges with its discontinued manufacturing operations and eroded net worth, the company's recent financial performance shows signs of improvement. The strategic sale of assets and plans for land development indicate that management is actively working to stabilize the company's financial position and explore new opportunities for growth.

Investors and stakeholders should closely monitor the company's future developments, particularly the outcome of legal proceedings and the progress of planned land development projects at Kolhapur.

Eurotex Industries & Exports has reported its financial results for the first quarter, revealing a continued struggle amidst the closure of its manufacturing plants.

Financial Performance

The company reported a net loss of Rs 87.04 lakhs for Q1, showing an improvement from the loss of Rs 111.37 lakhs in the same period last year. However, the company's revenue from operations saw a significant decline, dropping to Rs 4.43 lakhs from Rs 62.13 lakhs year-over-year.

Key Financial Highlights

Despite the reduced loss, the company's total expenses for the quarter stood at Rs 188.41 lakhs, while total income was Rs 59.31 lakhs, including other income of Rs 64.88 lakhs.

Operational Update

Eurotex Industries' manufacturing plants at Kolhapur have remained closed since March 25, 2019, with a formal closure announced on March 30, 2022. The closure was attributed to labor disputes and power disconnection. This ongoing situation continues to impact the company's operational capabilities and financial performance.

Segment Performance

The company operates in two segments: yarn and real estate development. The textile (yarn) segment reported a loss of Rs 113.00 lakhs before interest and tax for the quarter, while the real estate development segment did not generate any revenue during this period.

Future Plans

Despite the challenges, Eurotex Industries has made progress in settling its financial obligations. The company has settled all dues with lender banks and is now planning to develop the available land area at Kolhapur. This strategic move could potentially open new revenue streams for the company in the future.

Management Changes

In a separate announcement, the company's Board of Directors has approved the appointment of M/s Aabid & Co., Company Secretaries, as Secretarial Auditors for a term of five consecutive years, effective from April 01, 2025, until the conclusion of the Annual General Meeting to be held in the financial year 2030.