Gloster Reports Q2 Revenue Growth Amid Profitability Challenges

Gloster Limited , a prominent player in the jute industry, has released its financial results for the second quarter, showcasing a mixed performance with notable revenue growth but facing headwinds in profitability.

Revenue Surge

The company reported a substantial increase in revenue, which grew to 2.10 billion rupees from 1.40 billion rupees in the same quarter of the previous year, marking a significant year-over-year growth of 50%.

Profitability Metrics

Despite the robust top-line growth, Gloster experienced some challenges in its profitability metrics:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to 175.00 million rupees from 142.00 million rupees year-over-year.
However, the EBITDA margin declined to 8.32% from 10.23% in the comparable period.
Net profit decreased to 76.00 million rupees compared to 111.00 million rupees in the same period last year.

Financial Performance Overview

Metric	Q2 Current Year	Q2 Previous Year	Change
Revenue	2.10 billion	1.40 billion	+50.00%
EBITDA	175.00 million	142.00 million	+23.24%
EBITDA Margin	8.32%	10.23%	-191 bps
Net Profit	76.00 million	111.00 million	-31.53%

Segment Performance

Gloster operates in two primary business segments:

Jute Goods
Cables & Other Electrical Products

The company's consolidated results indicate that both segments contributed to the overall revenue growth, with Jute Goods remaining the dominant segment.

Corporate Actions

The Board of Directors has approved a modified scheme of amalgamation involving Gloster Lifestyle Limited and Gloster Specialities Limited, both wholly-owned subsidiaries, with Gloster Limited. This strategic move is subject to necessary approvals and is expected to streamline operations and potentially enhance shareholder value.

Legal Proceedings

Gloster is currently involved in a legal matter concerning the ownership of the 'Gloster' trademark. The case, which involves a subsidiary, Fort Gloster Industries Limited, is pending before the Supreme Court of India. The court has reserved its judgment after hearing arguments, and the company has not made any adjustments to its financial results regarding this matter.

Outlook

While Gloster has demonstrated strong revenue growth, the decline in profitability metrics suggests that the company may be facing cost pressures or competitive challenges. The management's ability to improve operational efficiency and maintain margins will be crucial for future performance.

Investors and stakeholders will likely keep a close watch on how Gloster navigates these challenges while capitalizing on its revenue growth momentum in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.55%	-6.72%	-3.88%	-2.27%	-8.86%	-33.96%

Gloster Limited , a prominent player in the jute industry, has announced a significant change in its statutory auditors. The company, along with its material subsidiary Fort Gloster Industries Limited, has appointed Singhi & Co. as their new statutory auditors following the resignation of Price Waterhouse & Co Chartered Accountants LLP.

Key Developments

Auditor Resignation: Price Waterhouse & Co Chartered Accountants LLP (Firm Registration No. 304026E/E-300009) resigned from their position as statutory auditors for both Gloster Limited and Fort Gloster Industries Limited on September 11.
New Appointment: The Board of Directors, based on the recommendation of the Audit Committee, has approved the appointment of Singhi & Co., Chartered Accountants (Firm Registration No. 302049E) as the new statutory auditors for both companies.
Effective Date: The appointment of Singhi & Co. is effective from September 11, subject to shareholder approval at the respective general meetings of both companies.

Reasons for Change

According to the company's statement, no specific reasons were provided for the resignation of Price Waterhouse & Co beyond those mentioned in their resignation letter. The Audit Committee and Board of Directors noted that there were no reasons other than those stated in the resignation letter.

About Singhi & Co.

Singhi & Co., the newly appointed statutory auditors, brings a wealth of experience to their role:

Founded in 1940 by Late R. C. Singhi, a Chartered Accountant from the United Kingdom
Registered with the Institute of Chartered Accountants of India (ICAI)
Employs over 600 professionals
Serves more than 100 listed companies as clients
Collaborates with Moore Global Network
Offers services including audit, assurance, risk consulting, corporate finance, tax, and management consulting

Regulatory Compliance

The change in auditors was announced in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11.

Company Appreciation

The Audit Committee and Board of Directors of Gloster Limited have placed on record their appreciation for the continuous support provided by Price Waterhouse & Co Chartered Accountants LLP during their tenure as the Statutory Auditor of the Company.

This change in statutory auditors marks a new chapter for Gloster Limited and its subsidiary, with Singhi & Co. set to oversee the financial auditing responsibilities for both entities, pending shareholder approval.