Shri Keshav Cements Reports 132% EBITDA Growth in Q2, Auditors Note GST Investigation Concerns

Shri Keshav Cement & Infra has reported a significant improvement in its financial performance for the second quarter. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) witnessed a substantial jump of 132% year-on-year, reaching Rs. 918.08 Lakhs.

Key Financial Highlights

EBITDA margin improved from 15.5% to 25.4% year-on-year
Cement dispatches increased by 52% compared to the same quarter last year
Sales volume grew by 64% year-on-year

Segment-wise Performance

The company's performance across its various business segments for the quarter is as follows:

Segment	Revenue (Rs. in Lakhs)	Segment Results (Rs. in Lakhs)
Cements	3,072.68	405.16
Petrol and Diesel	226.68	8.01
Solar Energy	208.60	-73.84
Others	33.41	22.83
Total	3,541.37	362.15

The cement segment continues to be the primary revenue driver for the company, while the solar energy segment reported a loss for the quarter.

Financial Position

As of the end of the quarter, Shri Keshav Cement & Infra reported:

Total assets of Rs. 42,155.69 Lakhs
Total liabilities of Rs. 32,151.51 Lakhs
Equity share capital of Rs. 1,751.28 Lakhs

Auditor's Observations

The company's auditors, Singhi & Co., have raised a concern in their limited review report. They noted that Shri Keshav Cement & Infra has made an advance payment of GST amounting to Rs. 641.52 Lakhs, plus interest and penalties of Rs. 218.11 Lakhs in the financial years 2020-21 and 2021-22. This payment was based on a search conducted by GST Intelligence at the company's premises, pertaining to liabilities for the financial years 2018-19 and 2019-20.

The auditors highlighted that the investigation by the Directorate General of GST Intelligence (DGGI) is not yet complete. These amounts are currently included as part of other current assets in the financial statements. Due to the ongoing nature of the investigation and the absence of final orders, the auditors were unable to comment on the potential impact on the financial results.

Management's Response

The company's management has not provided any specific comments on the auditor's observations in the released financial results. Investors and stakeholders may seek further clarification on this matter in upcoming communications or during the next earnings call.

Despite the noted concern, Shri Keshav Cement & Infra has demonstrated strong operational performance in the second quarter, with significant growth in its core cement business. The company's ability to improve its EBITDA margin substantially indicates effective cost management and operational efficiency. However, the ongoing GST investigation remains a point of attention for investors to monitor in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.41%	-4.74%	-24.34%	+24.40%	-13.42%	+487.83%

Shri Keshav Cement & Infra held its 32nd Annual General Meeting (AGM) on September 30, where shareholders approved several significant resolutions, including key board appointments and strategic initiatives to strengthen the company's governance and expand its business scope.

Board Appointments

Shareholders approved the reappointment of Mr. K.C. Patil as a Non-Executive Independent Director for a five-year term from November 13 to November 12. Mr. Patil, who holds an M.A. from Karnataka University and an L.L.B. from B.V. Bellad College, brings valuable experience in banking and finance to the board.

Additionally, the appointment of Mrs. Savita Metrani as a Non-Executive Independent Director was regularized for a five-year term from August 30 to August 29. Mrs. Metrani, with a B.Com from Swami Vivekanand College Mumbai and an L.L.B. from R.L. Law College Belagavi, contributes expertise in Corporate Law, Taxation, and Accounts to the company.

Executive Remuneration Approvals

The shareholders approved remuneration packages for key executives that exceed the limits prescribed by regulatory guidelines:

Mr. Vilas Katwa, Managing Director
Mr. Venkatesh Katwa, Executive Director
Mr. Deepak Katwa, Executive Director

These approvals ensure compliance with Section 197 of the Companies Act, 2013, and Regulation 17(6)(e) of SEBI (LODR) Regulations, 2015.

Strategic Initiatives

In a move to expand its business scope, shareholders approved the alteration of the object clause in the company's Memorandum of Association. This strategic decision allows Shri Keshav Cement & Infra to diversify its operations and explore new business opportunities.

Other Key Resolutions

The company appointed M/s. Akshay Jadhav & Associates as the Secretarial Auditor for a period of five financial years.
Shareholders ratified the remuneration of Cost Auditors for the financial year ending March 31.

Financial Statements

The AGM also saw the adoption of the audited financial statements for the year ended March 31, along with the reports of the Directors and Auditors.

The meeting, which began at 10:00 AM, concluded at 11:15 AM with a vote of thanks to the chair. These approvals and strategic decisions position Shri Keshav Cement & Infra for potential growth and improved governance in the coming years.