Jayshree Chemicals Reports Narrowed Loss in Q1, Completes Windmill Division Sale
Jayshree Chemicals Limited reported a reduced net loss of Rs 2.49 lakhs for Q1 FY24, down from Rs 11.38 lakhs in Q1 FY23. The company's revenue from operations was Rs 422.86 lakhs. The Trading Division (continuing operations) generated Rs 422.85 lakhs in revenue with a profit of Rs 10.96 lakhs before finance costs, tax, and exceptional items. The company completed the sale of its Windmill Division to Vaishnav Wind Infra Pvt. Ltd. for Rs 276.00 lakhs and closed its Electric Division. Exceptional items of Rs 3.02 lakhs were incurred related to the sale of its caustic soda manufacturing plant.
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Jayshree Chemicals Limited has reported a narrowed net loss for the quarter ended June 30, while also completing the sale of its Windmill Division. The company's financial results, approved by the Board of Directors on August 4, reveal both challenges and strategic moves aimed at streamlining operations.
Financial Performance
Jayshree Chemicals reported a net loss of Rs 2.49 lakhs for Q1, a significant improvement from the loss of Rs 16.07 lakhs in the previous quarter and Rs 11.38 lakhs in the same quarter last year. The company's revenue from operations stood at Rs 422.86 lakhs.
Segment-wise Performance
The company's financial results show a mixed performance across its segments:
Continuing Operations (Trading Division):
- Revenue: Rs 422.85 lakhs
- Net Profit (before finance costs, tax, and exceptional items): Rs 10.96 lakhs
Discontinued Operations:
- Wind Power Division: Profit of Rs 14.68 lakhs
- Electric Division: Closed during the quarter
Key Financial Metrics
| Particulars | Q1 (Rs in lakhs) |
|---|---|
| Revenue from Operations | 422.86 |
| Total Income | 442.06 |
| Total Expenses | 456.21 |
| Profit/(Loss) from Continuing Operations | (17.17) |
| Profit from Discontinued Operations | 14.68 |
| Net Profit/(Loss) | (2.49) |
Strategic Developments
Windmill Division Sale: Jayshree Chemicals completed the sale of its Windmill Division to Vaishnav Wind Infra Pvt. Ltd. for Rs 276.00 lakhs on July 2. This move was approved by the Board of Directors on April 24, and subsequently by the shareholders at the Annual General Meeting on June 10.
Closure of Electric Division: The company has closed its Electric Division, citing its insignificant contribution to revenue and net assets. This decision was approved by the Board of Directors on April 24.
Other Notable Points
- The company incurred exceptional items of Rs 3.02 lakhs related to expenses for the sale of its caustic soda manufacturing plant to Grasim Industries Ltd.
- Earnings per share for continuing and discontinued operations combined was negative Rs 0.01.
- The financial results were reviewed by statutory auditors AMK & Associates, who expressed an unmodified audit opinion.
Jayshree Chemicals' narrowed losses and strategic divestments indicate the company's efforts to streamline operations and improve financial performance. The completion of the Windmill Division sale and the closure of the Electric Division mark significant steps in the company's restructuring efforts. Investors and stakeholders will likely be watching closely to see how these moves impact the company's performance in the coming quarters.
Historical Stock Returns for Jayshree Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.14% | -0.43% | -6.91% | -9.91% | -27.39% | +55.56% |
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