Sejal Glass Limited, a company undergoing Corporate Insolvency Resolution Process (CIRP), has submitted its audited financial results for the fiscal year ended March 31, 2020, revealing substantial losses and a significant decline in revenue.

Financial Performance

The company reported a net loss of Rs 21.50 crores for the year, with quarterly losses ranging from Rs 5.22 crores to Rs 5.94 crores. The total income from operations saw a sharp decline, dropping to Rs 3.72 crores compared to Rs 8.54 crores in the previous year.

Insolvency Resolution Process

Sejal Glass Limited has been under the Corporate Insolvency Resolution Process since February 2019. Mr. Prashant Jain has been appointed as the Resolution Professional to oversee the process. In a significant development, a resolution plan submitted by Dilesh Road Lines Private Limited has been approved by the Committee of Creditors. The National Company Law Tribunal (NCLT) has reserved its order on July 2, 2020, regarding this resolution plan.

Auditor's Observations

The auditors have issued a qualified opinion on the financial statements, highlighting a notable discrepancy in the company's liabilities. According to the auditors, the liabilities are understated by Rs 55.94 crores. This observation is based on the difference between admitted claims of Rs 149.36 crores and book liabilities of Rs 93.41 crores.

Capital Structure

Despite the financial challenges, Sejal Glass Limited's paid-up equity share capital remains unchanged at Rs 33.55 crores. However, the company reported negative reserves of Rs 185.41 crores, reflecting the severe financial strain it is experiencing.

The ongoing insolvency resolution process and the approval of a resolution plan by the Committee of Creditors mark critical junctures for Sejal Glass Limited. Stakeholders will be closely watching the NCLT's decision, which could potentially chart the future course for the company amidst its financial difficulties.

Sejal Glass Limited , a leading architectural glass manufacturer, has announced its unaudited financial results for the first quarter, showcasing significant growth in both revenue and profitability.

Standalone Performance

On a standalone basis, Sejal Glass reported impressive growth in its financial metrics:

The company's net sales surged to ₹2,181.01 crores, marking a substantial increase of 43.80% compared to ₹1,516.70 crores in the same quarter last year. Sejal Glass turned around its bottom line, reporting a net profit of ₹13.10 crores, a significant improvement from a loss of ₹25.69 crores in the corresponding quarter of the previous year.

Consolidated Results

The consolidated financial results paint an even more robust picture of the company's performance:

Consolidated total income reached ₹7,776.24 crores for the quarter. The company reported a consolidated net profit of ₹441.63 crores, showing a remarkable growth of 215.70% from ₹139.87 crores in the same quarter last year.

Key Highlights

1. Acquisition Impact: The financial results include the impact of acquiring the architectural glass business of Glasstech Industries through a Business Transfer Agreement executed on April 10. This acquisition has significantly expanded Sejal Glass's manufacturing capabilities and market presence.

2. Business Segments: Sejal Glass primarily operates in the architectural glass manufacturing segment, catering to both domestic and international markets.

3. Global Presence: The company has one foreign subsidiary and one associate entity, contributing to its consolidated performance.

4. Operational Efficiency: Despite the substantial increase in revenue, the company has managed to control its expenses effectively, leading to improved profitability.

Market Outlook

The significant year-on-year growth in both revenue and profitability suggests a positive outlook for Sejal Glass in the architectural glass sector. The acquisition of Glasstech Industries' business is expected to further strengthen the company's market position and potentially lead to synergies in the coming quarters.

Conclusion

Sejal Glass Limited's Q1 results demonstrate robust growth and improved profitability, positioning the company well in the architectural glass manufacturing sector. The successful acquisition and strong financial performance indicate a positive trajectory for the company in the current fiscal year.

Note: The financial figures mentioned are for the quarter ended June 30, as per the company's filing.