Eurotex Industries Reports Q1 Loss of Rs 87.04 Lakhs Amid Ongoing Plant Closure
Eurotex Industries & Exports reported a net loss of Rs 87.04 lakhs for Q1, an improvement from Rs 111.37 lakhs loss in the previous year. Revenue dropped to Rs 4.43 lakhs from Rs 62.13 lakhs. Manufacturing plants in Kolhapur remain closed since March 2019 due to labor disputes and power issues. The company has settled all dues with lender banks and plans to develop available land in Kolhapur. The Board approved M/s Aabid & Co. as Secretarial Auditors for five years from April 2025.
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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
| Particulars (in Rs Lakhs) | Q1 Current | Q1 Previous |
|---|---|---|
| Revenue from Operations | 4.43 | 62.13 |
| Total Income | 59.31 | 106.47 |
| Total Expenses | 188.41 | 240.13 |
| Net Loss | (87.04) | (111.37) |
| Earnings Per Share (Rs) | (0.99) | (1.27) |
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.
Historical Stock Returns for Eurotex Industries & Exports
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.63% | +0.39% | -0.71% | +17.90% | -1.41% | +83.45% |
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