Nettlinx Limited , a prominent player in the Indian technology sector, has reported its financial results for the first quarter, along with several significant corporate updates.

Financial Performance

The company's standalone financial results for the quarter paint a challenging picture:

Nettlinx reported a standalone loss of Rs 48.24 lakhs for Q1, compared to a profit of Rs 136.18 lakhs in the previous quarter. The company's income from operations decreased significantly to Rs 284.46 lakhs from Rs 604.39 lakhs in the preceding quarter.

On a consolidated basis, the company reported a loss of Rs 48.33 lakhs, compared to a loss of Rs 15.29 lakhs in the previous quarter.

Board Changes and Corporate Updates

The company's board meeting on August 7 resulted in several key decisions:

1. Director Resignations: Mr. Sreenivasa Rao Kurra and Mr. Satya Raja Shakar Praharaju Kurra resigned from their positions as Non-Executive Independent Directors, effective August 7, citing professional responsibilities and personal reasons.

2. Director Re-appointment: The board approved the re-appointment of Mr. Jeeten Anil Desai as an Independent Director for a second term of five years, starting November 9, subject to shareholder approval.

3. Secretarial Auditor Appointment: M/s. Aakanksha Dubey & Co., Practicing Company Secretaries, were appointed as the new Secretarial Auditors for a period of five financial years.

4. Registered Office Relocation: The company's registered office will be shifted within local limits from Flat No. 303 to Flat No. 301, 3rd Floor, My Home Sarovar Plaza, Secretariat, Saifabad, Hyderabad.

5. Annual General Meeting: The 32nd Annual General Meeting is scheduled for September 23, to be held through video conferencing.

Divestment of Material Subsidiary

In a separate announcement on August 6, Nettlinx Limited disclosed the completion of the sale of its entire investment in Sri Venkateswara Green Power Projects Limited, a material subsidiary. This divestment, approved by shareholders through a postal ballot in June, marks a significant change in the company's structure.

Outlook

While Nettlinx Limited faces financial challenges in the current quarter, the company is actively restructuring its board and operations. The divestment of its material subsidiary and the upcoming AGM may provide more clarity on the company's future strategies and growth plans.

Investors and stakeholders will be keenly watching how these corporate changes and financial results impact Nettlinx's performance in the coming quarters.

Nettlinx Limited , a Hyderabad-based company, has successfully completed the sale of its entire investment in its material subsidiary, Sri Venkateswara Green Power Projects Limited. This strategic move marks a significant change in Nettlinx's corporate structure and portfolio.

Shareholder Approval and Transaction Timeline

The divestment process followed a structured timeline:

• May 27: Nettlinx filed disclosure requirements with stock exchanges.
• May 28: Postal ballot notice was filed with stock exchanges.
• May 30 - June 28: Shareholders voted on the proposal through a postal ballot.
• June 30: Voting results were announced, confirming shareholder approval.
• August 6: The sale transaction was officially closed.

Impact on Corporate Structure

As a result of this transaction, Sri Venkateswara Green Power Projects Limited has ceased to be a subsidiary of Nettlinx Limited. This change in the corporate structure could potentially impact Nettlinx's operational focus and financial outlook going forward.

Regulatory Compliance

Nettlinx Limited has ensured full compliance with regulatory requirements throughout the divestment process. The company adhered to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations & Disclosures Requirements) Regulations, 2015. Additionally, Nettlinx followed SEBI's circular No. SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 for disclosure requirements.

Management Statement

Rohith Lokareddy, Managing Director of Nettlinx Limited, signed off on the official intimation to the stock exchanges, confirming the completion of the sale and its implications for the company's structure.

This divestment represents a significant corporate action for Nettlinx Limited, potentially altering its business focus and financial structure. Investors and market watchers will likely be keen to observe how this move affects the company's future strategies and performance in the coming quarters.