Regency Ceramics Reports 601% Revenue Surge Amid Ongoing Recovery Efforts
Regency Ceramics Limited, a ceramic tile manufacturer, reported a substantial increase in revenue for the quarter. Revenue from operations rose by 601% to Rs. 672.04 lakhs, while total income reached Rs. 855.18 lakhs, up 564%. The company reduced its net loss to Rs. 196.01 lakhs, a 30% improvement. Regency has entered an exclusive manufacturing agreement for glazed vitrified tiles in Andhra Pradesh and is refurbishing its Yanam plant. The company received an income tax refund of Rs. 315.91 lakhs and an insurance claim of Rs. 15.14 crores related to a 2012 incident. However, auditors raised concerns about incomplete accounting of losses, lack of provisions for employee benefits, and non-provision of interest on certain dues.
*this image is generated using AI for illustrative purposes only.
Regency Ceramics Limited , a ceramic tile manufacturer, has reported a significant increase in revenue for the quarter, despite ongoing challenges in its recovery process.
Financial Highlights
- Revenue from operations soared to Rs. 672.04 lakhs, marking a 601% increase from Rs. 95.86 lakhs in the comparative quarter.
- Total income reached Rs. 855.18 lakhs, up from Rs. 128.65 lakhs in the previous year.
- The company posted a net loss of Rs. 196.01 lakhs, an improvement from the Rs. 281.12 lakhs loss in the comparative period.
Revenue and Profit Data
| Particulars (Rs. in lakhs) | Current Quarter | Previous Quarter | % Change |
|---|---|---|---|
| Revenue from Operations | 672.04 | 95.86 | 601% |
| Total Income | 855.18 | 128.65 | 564% |
| Net Loss | (196.01) | (281.12) | 30% improvement |
Operational Updates
Regency Ceramics is in the process of rebuilding its operations following a 2012 industrial incident that resulted in the destruction of its factory. The company has made progress on several fronts:
Exclusive Manufacturing Arrangement: Regency has entered into an exclusive manufacturing agreement for glazed vitrified tiles at a facility in Andhra Pradesh, with operations already commenced.
Yanam Plant Refurbishment: The company is actively refurbishing its plant in Yanam to restart operations.
Settlement with Workers: A Memorandum of Settlement was reached with the workers' union, involving the provision of house sites to displaced workers in Yanam.
Financial Position
- Accumulated losses stand at Rs. 8,849.59 lakhs as of June 30, 2025.
- The company received an income tax refund of Rs. 315.91 lakhs during the quarter.
- An insurance claim of Rs. 15.14 crores was received in January 2023, related to the 2012 incident.
Auditor's Observations
The independent auditor, K.S. Rao & Co., issued a qualified conclusion in their review report, highlighting several concerns:
- The financial statements do not fully account for losses from the 2012 incident.
- Lack of provisions for employee benefits such as gratuity and leave encashment.
- Non-provision of interest on unsecured loans and dues to MSME suppliers.
- Absence of liability provisions for interest and penalties on statutory dues.
Despite these challenges, the company's management maintains a 'going concern' basis for financial reporting, citing the initiation of business activities and resulting cash flows.
Regency Ceramics' significant revenue growth demonstrates progress in its recovery efforts. However, the company continues to face financial and operational hurdles as it works towards full reinstatement of its manufacturing capabilities.
Historical Stock Returns for Regency Ceramics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.50% | -0.13% | -1.62% | +0.62% | -33.76% | +4,579.00% |
16
