Shalimar Paints , a prominent player in the Indian paint industry, has reported its financial results for the first quarter, showcasing a mixed performance with improved revenue but continued losses.

Financial Highlights

• Revenue Growth: Shalimar Paints' consolidated revenue increased to ₹150.00 crore, up from ₹128.00 crore in the same period last year, representing a growth of about 17%.
• Net Loss: The company reported a consolidated net loss of ₹16.70 crore for the quarter, an improvement from the ₹27.00 crore loss in the corresponding quarter of the previous year.
• EBITDA Performance: The EBITDA loss narrowed significantly to ₹7.40 crore from ₹21.10 crore year-over-year, indicating better operational efficiency.

Financial Results Overview

Management Commentary

The Board of Directors of Shalimar Paints convened on August 11 to review and approve the unaudited financial results for the quarter ended June 30. The meeting, which started at 11:20 a.m. and concluded at 1:40 p.m., saw the board approving both standalone and consolidated financial results for the quarter.

Audit Review

Walker Chandiok & Co LLP, the company's statutory auditors, conducted a limited review of the financial results. The auditors stated that based on their review, nothing has come to their attention that causes them to believe that the financial statements are not prepared in accordance with applicable accounting standards and SEBI regulations.

Subsidiary Performance

The consolidated results include the performance of Shalimar Paints' subsidiaries. Notably, two subsidiaries, including IM Inicio Projects Private Limited (formerly known as Eastern Speciality Paints & Coatings Private Limited) and Shalimar Adhunik Nirman Limited, reported a combined net loss of ₹0.12 crore for the quarter.

Conclusion

While Shalimar Paints continues to face challenges, as evidenced by the ongoing losses, the company has shown signs of improvement. The significant revenue growth and reduction in EBITDA and net losses suggest that the company's strategies may be starting to yield positive results. Investors and stakeholders will be watching closely to see if this trend continues in the coming quarters.

The company has made the detailed financial results available on the stock exchange websites (BSE and NSE) as well as on its official website, www.shalimarpaints.com , for further scrutiny by interested parties.

Shalimar Paints , a prominent player in the Indian paint industry, has released its financial results for the fourth quarter, showcasing improvements across key metrics despite ongoing challenges. Additionally, the company has announced a significant financial move to raise funds.

Narrowing Losses

The company reported a significant reduction in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss for Q4. The EBITDA loss narrowed to ₹73.00 million, a substantial improvement from the ₹224.00 million loss recorded in the same quarter of the previous year. This represents a 67.41% reduction in EBITDA loss year-over-year.

Revenue Growth

Shalimar Paints demonstrated strong top-line performance in Q4. The company's revenue increased to ₹1,780.00 million, up from ₹1,440.00 million in the corresponding quarter of the previous year. This represents a healthy 23.61% growth in revenue, indicating improved market traction and potentially higher sales volumes or better pricing strategies.

Net Loss Reduction

The consolidated net loss for Q4 also showed a marked improvement. Shalimar Paints reported a net loss of ₹95.00 million, significantly lower than the ₹265.00 million loss incurred in the same quarter of the previous year. This 64.15% reduction in net loss suggests that the company's efforts to optimize operations and control costs are yielding positive results.

Financial Performance Overview

To better illustrate Shalimar Paints' Q4 performance, here's a summary of the key financial metrics:

The financial results indicate that Shalimar Paints is making progress in its turnaround efforts. The combination of revenue growth and reduced losses suggests improved operational efficiency and potentially stronger market positioning. However, the company still faces challenges as it continues to operate at a loss, albeit a significantly reduced one.

Fundraising Initiative

In a significant development, the board of Shalimar Paints has approved raising funds up to ₹70 crore through the issuance of Non-Convertible Debentures (NCDs). This decision represents an important financial move for the company, potentially aimed at supporting its operations or funding growth initiatives.

As Shalimar Paints moves forward, investors and industry observers will likely be watching closely to see if the company can maintain this positive momentum, potentially achieve profitability in the coming quarters, and effectively utilize the funds raised through the NCD issuance to drive further growth and operational improvements.