Nahar Spinning Mills Limited , a prominent player in the textile industry, has reported a significant boost in its financial performance for the first quarter, alongside announcing an ambitious modernization plan.

Financial Highlights

The company's unaudited financial results for the quarter reveal a remarkable 141% year-on-year increase in net profit. Nahar Spinning Mills posted a profit of Rs 15.96 crore for the quarter, compared to Rs 6.64 crore in the same period last year.

Revenue from operations remained relatively stable at Rs 819.28 crore, compared to Rs 820.88 crore in the corresponding quarter of the previous year. This stability in revenue, coupled with a substantial increase in profit, indicates improved operational efficiency and cost management.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a notable improvement, rising to Rs 57.90 crore from Rs 52.52 crore in the previous year. Consequently, the EBITDA margin expanded to 7.07% from 6.40% year-over-year.

Modernization and Expansion Plans

In a significant move, Nahar Spinning Mills' Board of Directors has approved a comprehensive modernization plan for its spinning units across various locations. The plan involves a capital outlay of approximately Rs 325.00 crore. Additionally, the company will invest Rs 25.00 crore in an 11 MW Solar PV System for its own consumption, bringing the total investment to Rs 350.00 crore.

Key points of the modernization plan include:

1. Replacement of old textile machinery with ultra-modern equipment
2. Expected increase in overall production efficiencies by 9%
3. Improvement in product quality
4. Potential for diversification and increased exports to quality-conscious markets in the U.S. and European Union

The company aims to complete this modernization by the financial year 2027-28, financing it through a combination of internal accruals and term loans from banks.

Dividend Announcement and AGM Details

The Board has declared a dividend of Rs 1.00 per equity share. The record date for dividend payment is set as September 5, 2025.

Nahar Spinning Mills has scheduled its 45th Annual General Meeting (AGM) for September 25, 2025, to be held through video conferencing. The company will provide remote e-voting facilities to shareholders from September 22 to September 24, 2025.

Outlook

With its strong financial performance and forward-looking modernization plans, Nahar Spinning Mills appears well-positioned to enhance its competitiveness in the global textile market. The significant investment in upgrading manufacturing facilities and adopting renewable energy solutions demonstrates the company's commitment to sustainable growth and operational excellence.

As the textile industry continues to evolve, Nahar Spinning Mills' strategic initiatives may help it capitalize on emerging opportunities and navigate potential challenges in the sector.

Nahar Spinning Mills Ltd. , a prominent player in the textile industry, has announced a crucial board meeting scheduled for July 31, 2025. The meeting agenda includes several significant items that could shape the company's future operations and financial performance.

Financial Results and Investment Plans

The board of directors will convene to approve the unaudited financial results for the quarter ended June 30, 2025. This quarterly review will provide insights into the company's recent performance and financial health.

In addition to the financial review, the board will consider two major capital investment proposals:

1. Spinning Units Modernization: A comprehensive modernization plan for the company's spinning units across various locations. The proposed capital outlay for this initiative is approximately Rs. 325.00 crores.

2. Solar Power Installation: Plans to install an 11 MW Solar PV System for the company's own consumption, with an estimated capital cost of Rs. 25.00 crores.

These investments, totaling Rs. 350.00 crores, signal Nahar Spinning Mills' commitment to upgrading its infrastructure and embracing sustainable energy solutions.

Trading Window Closure

In compliance with regulatory requirements, the company has implemented a trading window closure. The trading window for Nahar Spinning Mills' securities will remain closed from July 1, 2025, until 48 hours after the declaration of the quarterly results. This measure ensures fair trading practices and prevents insider trading during the sensitive period surrounding the financial results announcement.

The upcoming board meeting and the proposed capital investments underscore Nahar Spinning Mills' focus on growth, operational efficiency, and sustainability. Investors and market observers will be keenly watching for the outcomes of this meeting, particularly the quarterly financial results and the final decisions on the proposed investments.