Mahalaxmi Fabric Mills Reports Consolidated Profit Surge in Q1

Mahalaxmi Fabric Mills Limited (MFML) has announced its financial results for the first quarter, showcasing a significant improvement in consolidated performance despite challenges in its standalone operations.

Consolidated Performance

The textile company reported a substantial increase in consolidated profit for Q1. Net profit rose to Rs 258.60 crore, compared to Rs 17.18 crore in the same quarter of the previous year, marking a remarkable year-on-year growth of over 1400%.

However, consolidated revenue from operations saw a decline, standing at Rs 3,351.78 crore for the quarter, down from Rs 3,915.68 crore in the corresponding period last year.

Standalone Operations

On a standalone basis, MFML continued to face headwinds. The company reported a loss of Rs 112.52 crore, although this represents a slight improvement from the loss of Rs 129.89 crore in the same quarter of the previous year. Standalone revenue also declined to Rs 1,179.14 crore from Rs 1,881.54 crore year-on-year.

Subsidiary Contribution

The strong consolidated performance was largely driven by MFML's wholly-owned subsidiary, Mahalaxmi Exports Private Limited. The subsidiary contributed significantly to the group's results with revenue of Rs 2,202.66 crore and a net profit of Rs 371.12 crore for the quarter.

Key Financial Metrics

Other Highlights

• The company's board meeting to approve these results was held on August 13 and concluded at 9:55 PM.
• MFML continues its recovery efforts following a factory fire in November of the previous year. The company has received partial insurance claims and is actively working on resuming production activities.
• Steps have been initiated to rebuild the damaged infrastructure, including construction of the affected building and placing orders for new plant and machinery.

Management Commentary

While specific management quotes were not provided, the financial results indicate that MFML's consolidated entity has shown resilience and growth despite challenges faced by the standalone business. The significant contribution from its subsidiary, Mahalaxmi Exports Private Limited, has been crucial in driving the overall profitability of the group.

The company's efforts to recover from the fire incident and resume full-scale operations will be key factors to watch in the coming quarters. Investors and stakeholders will likely be keen to see how these initiatives impact the company's performance in future periods.

Note: All figures are in accordance with Indian Accounting Standards (IND AS) as specified in the Companies (Indian Accounting Standards) Rules, 2015, and have been subjected to limited review by the company's statutory auditors.