PBM Polytex Reports Narrowed Q1 Loss Amid Revenue Growth

PBM Polytex Limited, a cotton yarn manufacturer, has reported a narrowed standalone net loss for the first quarter, despite an increase in revenue. The company's financial performance shows signs of improvement compared to the same period last year.

Financial Highlights

• Revenue Growth: PBM Polytex's revenue from operations increased to Rs 4,647.07 crore, up from Rs 4,123.41 crore in the corresponding quarter of the previous year, marking a 12.70% year-on-year growth.

• Reduced Losses: The company reported a standalone net loss of Rs 75.06 crore for the quarter, compared to a loss of Rs 102.78 crore in the same quarter last year, showing a 26.97% reduction in losses.

• Consolidated Performance: On a consolidated basis, PBM Polytex posted a net loss of Rs 147.03 crore, compared to Rs 107.63 crore in the previous year's quarter.

• Expenses: Total expenses on a standalone basis were Rs 4,874.55 crore against a total income of Rs 4,775.31 crore, indicating that expenses slightly outpaced income.

• Earnings Per Share: Basic earnings per share stood at negative Rs 1.15 on a standalone basis and negative Rs 2.14 on a consolidated basis.

Segment Performance

PBM Polytex operates in a single segment - manufacturing of cotton yarn - which is considered to be the company's only reportable business segment.

Associate Company Update

The company's associate, Eurotex Industries and Exports Limited, has closed its manufacturing operations at Kolhapur since March 2019. The management of Eurotex Industries has settled all dues of lender banks and is planning to undertake further development of its available land area in the near future.

Management Commentary

Gopal Patodia, Managing Director of PBM Polytex Limited, stated in the company's filing, "The Board of Directors has reviewed and approved the unaudited standalone and consolidated financial results for the quarter. Despite challenging market conditions, we have managed to increase our revenue and narrow our losses compared to the same period last year."

Outlook

While PBM Polytex continues to face challenges, the increase in revenue and reduction in losses suggest potential improvements in the company's operations. The management's focus on settling dues and exploring development opportunities for its associate company may contribute to the group's overall financial health in the coming quarters.

Investors and stakeholders will be watching closely to see if PBM Polytex can build on this quarter's improvements and return to profitability in the near future.