Lakshmi Mills , a prominent player in the textile industry, has released its financial results for the second quarter and half-year ended September 30, 2023, revealing a mixed performance with notable changes in revenue and profitability.

Q2 Performance Highlights

The company reported revenue from operations of Rs 5,862.73 lakhs for Q2, marking a significant decline of 19.19% compared to Rs 7,254.78 lakhs in the same quarter of the previous year. Despite the revenue drop, Lakshmi Mills managed to more than double its profit after tax, posting Rs 252.45 lakhs for the current quarter, up from Rs 114.09 lakhs in Q2 of the previous year.

Half-Year Results

For the half-year period, the company's performance showed a similar trend:

The substantial increase in loss after tax for H1 is primarily attributed to significant deferred tax adjustments of Rs 1,983.89 lakhs related to brought forward unabsorbed depreciation and the adoption of a new tax regime.

Segment Performance

Lakshmi Mills operates in two business segments:

1. Textiles: This segment reported a loss before interest and tax of Rs 64.27 lakhs for Q2.
2. Rental Services: The rental services segment generated a profit of Rs 524.05 lakhs in the same quarter.

Financial Position

As of September 30, 2023, the company's financial position shows:

• Total Assets: Rs 102,168.56 lakhs
• Total Equity: Rs 81,137.55 lakhs
• Total Liabilities: Rs 21,031.01 lakhs

Management Actions

The Board of Directors reconstituted the Audit Committee during their meeting held on November 10, 2023, indicating the company's commitment to maintaining strong corporate governance practices.

Conclusion

While Lakshmi Mills faces challenges in its core textile business, as evidenced by the revenue decline and segment loss, the company's rental services continue to perform well. The significant increase in quarterly profit despite lower revenue suggests improved operational efficiency or cost management. However, the substantial half-year loss underscores the impact of tax-related adjustments on the company's bottom line.

Lakshmi Mills , a prominent player in the textile industry, made several significant leadership appointments at its 115th Annual General Meeting (AGM) held on September 12. The company's shareholders approved a series of resolutions that will shape its governance and operations in the coming years.

New Independent Director Appointed

Smt Priya Bhansali, a Chartered Accountant with 37 years of experience in Direct Taxation and International Taxation, has been appointed as an Independent Director of the company. Her appointment is for an initial term of five consecutive years, starting from the conclusion of the 115th AGM until the 120th AGM or five years, whichever is earlier. Bhansali's extensive experience is expected to bring valuable insights to the company's financial strategies and governance.

Deputy Managing Director Reappointed

Sri Aditya Krishna Pathy has been reappointed as Deputy Managing Director for a further period of three years, effective July 30. Pathy, who has 16 years of management experience and is a Graduate in Business Management, will continue to play a crucial role in the company's leadership. His reappointment comes with a comprehensive remuneration package, including a monthly salary of Rs. 6,50,000.00 with an annual increment of Rs. 75,000.00, along with various benefits and perquisites.

Secretarial Auditors Appointed

The company has appointed M/s MDS Associates LLP as Secretarial Auditors for a five-year term. This appointment ensures compliance with regulatory requirements and strengthens the company's corporate governance framework.

Other Key Resolutions

The AGM also saw the approval of several other important resolutions:

1. Adoption of the Audited Financial Statements for the year ended March 31.
2. Reappointment of Sri Aditya Krishna Pathy as a director liable to retire by rotation.
3. Reappointment of M/s. A. R. Ramasubramania Raja and Co. as Cost Auditors.

Shareholder Participation and Voting

The AGM was conducted through Video Conferencing (VC) / Other Audio Visual Means (OAVM), with 50 members present, representing 71.08% of the company's shares. The e-voting results showed overwhelming support for all resolutions, with each receiving over 99.99% votes in favor.

Sri S. Pathy, Chairman and Managing Director, presided over the meeting and briefed the members on the economic overview, textile industry scenario, and the company's performance. The Deputy Managing Director provided insights into the company's operations, covering aspects such as raw materials, personnel, power, finance, and corporate social responsibility.

This AGM marks a significant milestone for Lakshmi Mills, setting the stage for its future growth and governance under the newly appointed and reappointed leadership.