Nutech Global Reports Q1 Loss, Adopts New Corporate Governance Documents
Nutech Global Limited, a Bhilwara-based textile company, reported a net loss of ₹13.64 crore for Q1, narrowing from a ₹20.89 crore loss in the same period last year. Revenue from operations decreased by 26.3% to ₹756.34 crore. The company's EPS was negative at ₹0.43. Total expenses reduced to ₹769.98 crore. The Board approved new Memorandum and Articles of Association to align with the Companies Act, 2013, pending shareholder approval.
*this image is generated using AI for illustrative purposes only.
Nutech Global Limited, a textile company based in Bhilwara, Rajasthan, has reported its financial results for the first quarter. The company faced challenges during the quarter, reporting a net loss and a decline in revenue compared to the same period last year.
Financial Performance
Nutech Global Limited reported a net loss of ₹13.64 crore for the quarter, compared to a loss of ₹20.89 crore in the same period last year. While the loss has narrowed year-over-year, it represents a deterioration from the previous quarter's profit of ₹11.06 crore.
Revenue from operations stood at ₹756.34 crore, marking a significant decrease from ₹1,026.64 crore in the corresponding quarter of the previous year. This represents a decline of approximately 26.3% in top-line performance.
The company's earnings per share (EPS) for the quarter was negative at ₹0.43, compared to a negative EPS of ₹0.65 in the same quarter last year.
Key Financial Metrics
| Particulars (in ₹ crore) | Q1 Current | Q1 Previous | Change (%) |
|---|---|---|---|
| Revenue from Operations | 756.34 | 1,026.64 | -26.3% |
| Net Loss | -13.64 | -20.89 | +34.7% |
| EPS (in ₹) | -0.43 | -0.65 | +33.8% |
Operational Highlights
The company's total expenses for the quarter were ₹769.98 crore, lower than the ₹1,048.15 crore reported in the same quarter last year. This reduction in expenses, however, was not sufficient to offset the decline in revenue.
Key expense items included:
- Purchases of stock in trade: ₹556.58 crore
- Employee benefit expenses: ₹48.93 crore
- Finance costs: ₹36.04 crore
- Other expenses: ₹100.31 crore
Corporate Governance Update
In a significant move to align with current regulatory requirements, the Board of Directors of Nutech Global Limited has approved the adoption of new Memorandum and Articles of Association. These changes are subject to shareholder approval at the upcoming Annual General Meeting.
The adoption of the new MOA and AOA is aimed at aligning the company's governance documents with the Companies Act, 2013, replacing the existing documents based on the erstwhile Companies Act, 1956. The company stated that there is no change in the main objects of the company, and the amendments are primarily to ensure compliance with current regulations.
Audit Review
The financial results were reviewed by the company's statutory auditors, Deepak Agal & Co, Chartered Accountants, who stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards.
Investors and stakeholders will be watching closely to see how Nutech Global Limited navigates the challenges reflected in its Q1 results and whether the adoption of new governance documents will contribute to improved performance in the coming quarters.
Historical Stock Returns for Nutech Global
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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