Precision Camshafts Limited , a leading auto component manufacturer, has reported a significant loss for the quarter, primarily due to an impairment loss related to its German subsidiary.

Financial Highlights

Precision Camshafts reported a loss of INR 42.65 crores, compared to a profit of INR 25.6 crores in the previous quarter. This substantial swing to loss was primarily attributed to exceptional items worth INR 49.7 crores from the impairment of its German subsidiary MFT GmbH, which has entered liquidation.

New Business Orders

Despite the challenging quarter, the company has secured new business orders worth INR 1,500 crores from major automotive manufacturers including Maruti Suzuki, Hyundai India, Mahindra, and UzAuto. Production for these new orders is expected to start in calendar year 2026.

Investment Plans

Precision Camshafts plans to invest INR 120 crores for the projects related to the newly secured business orders. This investment indicates the company's commitment to future growth despite current setbacks.

Subsidiary Insolvency

The German subsidiary, MFT Motoren und Fahrzeugtechnik GmbH (MFT GmbH), has entered liquidation, leading to the significant impairment loss recognized by Precision Camshafts.

Conclusion

Precision Camshafts' results reflect a challenging period for the company, primarily due to the impairment loss related to its German subsidiary. However, the new business orders worth INR 1,500 crores and planned investments of INR 120 crores suggest that the company is positioning itself for future growth. The company's strategies to navigate these challenges and its plans for recovery will likely be of interest to investors and analysts.

Precision Camshafts Limited (PCL) has received shareholder approval for a significant corporate action involving the disposal of a material subsidiary through insolvency proceedings. This decision, passed via a special resolution in a postal ballot, marks a notable development for the company.

Voting Results

The remote e-voting process, which ran from September 16 to October 15, saw strong participation from shareholders. Here's a breakdown of the voting results:

The total votes polled represented 66.18% of the company's outstanding shares, indicating significant shareholder engagement in this crucial decision.

Key Highlights

• Special Resolution: The proposal to dispose of 100% shareholding in a material subsidiary through insolvency proceedings was passed as a special resolution.
• Overwhelming Support: The resolution received near-unanimous support, with 99.98% of votes cast in favor.
• Promoter Backing: All votes from the promoter and promoter group, holding 62,092,363 shares, were cast in favor of the resolution.
• Institutional Support: Public institutions, with 406,807 shares, also showed unanimous support for the proposal.
• Strong Public Approval: Public non-institutional investors demonstrated 98.26% support for the resolution.

Compliance and Transparency

PCL has adhered to regulatory requirements by conducting the postal ballot in accordance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The company appointed an independent scrutinizer, Jayavant B. Bhave of J. B. Bhave & Co., Company Secretaries, to oversee the voting process and ensure its fairness and transparency.

Implications

This shareholder approval paves the way for Precision Camshafts Limited to proceed with the disposal of its material subsidiary through insolvency proceedings. While the specific reasons for this decision were not detailed in the available information, such actions are typically undertaken as part of strategic restructuring or to address financial challenges within the group.

Investors and stakeholders will likely be watching closely to see how this move impacts PCL's operations and financial position in the coming months. The strong shareholder support suggests confidence in the management's decision-making and strategy for the company's future direction.

As the process unfolds, Precision Camshafts Limited is expected to provide further updates to the stock exchanges and shareholders regarding the implementation of this resolution and its impact on the company's overall business structure.