Kallam Textiles Reports Loss Before Tax of Rs 1,337.59 Lakhs for FY 2020-21

Kallam Textiles Limited , a multi-segment textile company, has announced its audited financial results for the quarter and year ended March 31, 2021. The company reported a loss before tax of Rs 1,337.59 lakhs for the fiscal year 2020-21, showing an improvement from the previous year's loss of Rs 1,711.65 lakhs.

Financial Performance

The company's net sales from operations stood at Rs 26,061.97 lakhs for the year, compared to Rs 29,161.07 lakhs in the previous fiscal year, indicating a decline in revenue. Here's a breakdown of the company's performance:

Particulars	FY 2020-21 (Rs in lakhs)	FY 2019-20 (Rs in lakhs)	Change (%)
Net Sales	26,061.97	29,161.07	-10.63
Loss Before Tax	1,337.59	1,711.65	-21.85

Segment-wise Revenue

Kallam Textiles operates across multiple segments, with spinning and weaving being the major contributors to its revenue. The segment-wise breakdown for the fiscal year is as follows:

Segment	Revenue (Rs in lakhs)
Spinning	14,851.19
Weaving	10,194.75
Other segments	1,016.03

The other segments include dyeing, solar power, and power generation.

Corporate Governance

The board meeting to approve the financial results was held on June 29, 2021. The company's paid-up equity share capital remained unchanged at Rs 256.38 lakhs. Statutory auditors Chevuturi Associates issued an unmodified opinion on the financial results, indicating that the financial statements present a fair view of the company's financial position.

Recent Financial Trends

According to the latest income statement data:

Revenue: The company's revenue for the quarter ended June was Rs 49.30 crore, showing a decrease of 24.39% compared to the same quarter in the previous year.
Net Profit: The net loss for the quarter ended June was Rs 18.00 crore, widening from a loss of Rs 8.80 crore in the same quarter of the previous year.
Operating Profit Margin (OPM): The OPM for the quarter ended June was -13.76%, significantly lower than the -3.91% reported in the same quarter of the previous year.

These recent figures suggest that Kallam Textiles continues to face challenges in its operations, with declining revenues and widening losses compared to previous periods.

The textile industry has been facing headwinds due to various factors, including global economic conditions and changes in consumer behavior. Kallam Textiles' performance reflects these industry-wide challenges, and the company may need to focus on cost optimization and exploring new market opportunities to improve its financial position in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.76%	+3.17%	+2.36%	-16.13%	-39.81%	-44.44%

Kallam Textiles Limited , a prominent player in the Indian textile industry, has received a significant financial boost from the Government of Andhra Pradesh. The company recently announced that it has been granted an interest subsidy of Rs 3.30 crores under the state's Industrial Development Policy (IDP).

Key Details of the Subsidy

Aspect	Details
Amount Received	Rs 3.30 crores
Purpose	Reimbursement of Interest Subsidy
Policy Framework	Andhra Pradesh Industrial Development Policy (IDP)
Recipient	Kallam Textiles Limited
Granting Authority	Government of Andhra Pradesh

Implications and Transparency

This development marks a positive step for Kallam Textiles, potentially enhancing its financial position and operational capabilities. The interest subsidy, part of the state government's efforts to promote industrial growth, could contribute to the company's ability to manage its debt more effectively or invest in its operations.

In line with regulatory requirements, Kallam Textiles has promptly notified the Bombay Stock Exchange about this financial update. This transparency aligns with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements, ensuring that shareholders and potential investors are kept informed of significant financial developments.

About Kallam Textiles Limited

Kallam Textiles Limited, formerly known as Kallam Spinning Mills Limited, is a textile manufacturing company based in Guntur, Andhra Pradesh. The company has been an active participant in the state's industrial landscape.

This government support through the interest subsidy reimbursement underscores the ongoing efforts to bolster the textile sector in Andhra Pradesh, potentially contributing to the broader economic development of the region.

As the textile industry continues to be a significant contributor to India's manufacturing sector, such government initiatives play a crucial role in supporting companies like Kallam Textiles, potentially enhancing their competitiveness and sustainability in the market.