Gujarat Poly Avx Electronics Reports Strong Quarterly Results and Approves Property Sale to Tirex Transmission

Gujarat Poly Avx Electronics Limited (GPEL) has announced a series of significant developments, including strong quarterly results and a major property transaction, signaling a transformative period for the company.

Impressive Financial Performance

For the quarter ended June 30, GPEL reported a substantial increase in net profit, reaching Rs. 282.93 lakhs compared to Rs. 50.65 lakhs in the same quarter of the previous year. This remarkable growth represents a 458.40% year-over-year increase. The company's total income also saw a significant rise, climbing to Rs. 723.40 lakhs from Rs. 507.55 lakhs in the corresponding quarter last year, marking a 42.53% increase.

Strategic Property Sale

In a move that could reshape its operations, GPEL's board has approved the sale of leasehold rights to a plot of land and ownership rights to a factory building located at Gandhinagar Electronic Estate. The property will be sold to Tirex Transmission Private Limited for a consideration of Rs. 29.00 crores. This transaction is subject to shareholder approval and necessary statutory clearances.

Operational Continuity and Transition

To ensure smooth business operations during the transition, GPEL has made arrangements to relocate its operations. The company has stated that this move is not expected to adversely affect its turnover. Additionally, GPEL has reached an agreement with Tirex for the continued use of the registered office premises during the transitional period.

Enhanced Financial Flexibility

The board has also approved an increase in the company's lending and investment limits from Rs. 35.00 crores to Rs. 60.00 crores. This decision aims to provide GPEL with greater financial flexibility for future growth initiatives.

Shareholder Approval and EGM

An Extraordinary General Meeting (EGM) has been scheduled for September 1 to seek shareholder approval for the property sale and the increase in lending and investment limits. The meeting will be held through video conferencing.

Financial Highlights

Gujarat Poly Avx Electronics' strong financial performance and strategic initiatives demonstrate the company's commitment to growth and operational optimization. As the company moves forward with its property sale and relocation plans, investors and stakeholders will be keenly watching how these changes impact GPEL's future performance and market position.