Kakatiya Textiles Reports Wider Q1 Loss Despite Revenue Surge

Kakatiya Textiles Ltd , a cotton yarn manufacturer based in Andhra Pradesh, has reported a significant increase in revenue for the first quarter, despite widening losses. The company's financial results for the quarter ended June 30 reveal a complex picture of growth and challenges.

Revenue Surge

Kakatiya Textiles saw a substantial rise in its total income from operations, which increased to ₹701.00 lakhs, up from ₹237.00 lakhs in the same quarter of the previous year. This represents a remarkable year-over-year growth of 195.78%.

Widening Losses

Despite the impressive revenue growth, the company reported a net loss of ₹62.00 lakhs for the quarter, compared to a loss of ₹5.00 lakhs in the corresponding period last year. The loss before exceptional items and tax stood at ₹92.00 lakhs.

Exceptional Items

The company recorded exceptional items of ₹30.00 lakhs from profit on sale of old machinery, which helped to partially offset the losses for the quarter.

Per Share Earnings

The basic earnings per share (EPS) for the quarter stood at -₹1.07, compared to -₹0.09 in the same quarter of the previous year, reflecting the increased loss.

Financial Position

Kakatiya Textiles maintains an equity share capital of ₹579.00 lakhs. The company's financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the Audit Committee before being approved by the Board of Directors.

Segment Information

The company is primarily engaged in the manufacturing of Cotton Yarn, which remains its only reportable segment as per Ind AS 108 "Operating Segments".

Management Commentary

Vanka Ravindranath, Chairman & Director of Kakatiya Textiles, signed off on the financial results.

Conclusion

While Kakatiya Textiles has shown significant growth in revenue, the widening losses present a challenge for the company. The sale of old machinery provided some relief, but the overall financial health of the company will likely depend on its ability to convert the increased revenue into profitability in the coming quarters.

Investors and stakeholders will be watching closely to see how the company manages its costs and capitalizes on its revenue growth to improve its bottom line in future quarters.