Indokem Limited Reports Strong Q1 Results, Expands into Digital Textile Printing

Indokem Limited , a leading player in the textile dyes and chemicals sector, has reported robust financial results for the first quarter, alongside announcing strategic business expansions and key board appointments.

Financial Performance

For the quarter ended June 30, Indokem Limited posted impressive growth on both standalone and consolidated bases:

The company's standalone income from operations saw a significant increase of 13.4% year-over-year, rising from Rs 3204.00 lakhs to Rs 3632.00 lakhs. More notably, Indokem turned around its financial performance, reporting a profit before tax of Rs 33.00 lakhs compared to a loss of Rs 181.00 lakhs in the same quarter last year.

On a consolidated basis, the company's performance was even stronger, with income from operations reaching Rs 4157.00 lakhs, up 12.4% from Rs 3698.00 lakhs in the previous year's quarter. The consolidated profit before tax stood at Rs 70.00 lakhs, a substantial improvement from the loss of Rs 139.00 lakhs in the corresponding quarter of the previous year.

Strategic Business Expansion

In a significant move to diversify its business portfolio, Indokem's Board of Directors has approved the company's entry into the digital textile printing technology sector. This strategic decision aligns with Indokem's long-term vision of expanding its presence across the textile value chain and tapping into high-growth, technology-driven segments.

As part of this initiative, Indokem will enter into a Strategic Marketing Partnership Agreement with RDX Digital Technologies, a Coimbatore-based sole proprietorship. This collaboration aims to formalize a business model for marketing, promoting, and selling digital textile printing machines, as well as trading and distributing related consumables and spare parts.

To kickstart this new line of business, the Board has approved an initial investment of Rs 1.20 crore for procuring digital textile printing machines and essential inventory.

Key Appointments and Corporate Actions

The Board meeting also saw several important decisions:

1. Re-appointment of Director: Mrs. Asha M. Khatau has been re-appointed as a Non-Executive Director, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. Auditor Appointments:

   • M/s. Y.S. Gokhale & Associates have been appointed as Cost Auditors.
   • M/s. Mayur More & Associates have been named Secretarial Auditors for a five-year term.

3. AGM and Book Closure: The 59th AGM is scheduled for September 25, to be held via video conferencing. The Register of Members and Share Transfer Books will remain closed from September 19-25.

These developments underscore Indokem Limited's commitment to growth, diversification, and maintaining robust corporate governance practices. The company's foray into digital textile printing technology, coupled with its improved financial performance, positions it well for sustained growth in the evolving textile industry landscape.