Sri Ramakrishna Mills Reports Net Loss of Rs 72.12 Lakh in Q1 Amid Revenue Decline
Sri Ramakrishna Mills (Coimbatore) Ltd reported a net loss of Rs 72.12 lakh in Q1, down from a net profit of Rs 3.65 crore in the same quarter last year. Revenue from operations decreased by 23.5% to Rs 16.47 crore. The textile segment saw a 33.5% revenue decline to Rs 10.98 crore and reported a loss of Rs 18.63 lakh. The real estate segment showed improvement with a 4.3% revenue increase to Rs 5.49 crore and a significant profit rise to Rs 734.20 lakh. EBITDA turned negative at Rs 1.86 crore, and EPS decreased to Rs -0.40.
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Sri Ramakrishna Mills (Coimbatore) Ltd , a textile and real estate company, has reported a net loss of Rs 72.12 lakh for the first quarter, marking a significant downturn from the net profit of Rs 3.65 crore recorded in the same quarter of the previous year.
Revenue and Operational Performance
The company's revenue from operations saw a substantial decline of 23.5% year-on-year, dropping to Rs 16.47 crore from Rs 21.52 crore in the corresponding quarter of the previous fiscal year. This decline was primarily driven by challenges in the textile segment.
Segment-wise Performance
Textile Segment
The textile segment, which forms a significant part of the company's operations, faced considerable headwinds:
- Revenue fell by 33.5% to Rs 10.98 crore
- The segment result turned negative, reporting a loss of Rs 18.63 lakh compared to a profit of Rs 50.07 lakh in the previous year
Real Estate Segment
In contrast, the real estate segment showed signs of improvement:
- Revenue increased by 4.3% to Rs 5.49 crore
- Segment profit rose significantly to Rs 734.20 lakh from Rs 28.66 lakh in the previous year
Financial Metrics
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) turned negative at Rs 1.86 crore, compared to a positive Rs 6.67 crore in the same quarter of the previous year
- Basic and diluted earnings per share (EPS) decreased to Rs -0.40 from Rs 5.13 in the corresponding quarter last year
- Total assets of the company decreased to Rs 5,592.34 crore from Rs 6,922.13 crore as of the end of the previous fiscal year
Segment Assets and Liabilities
As of the end of the quarter:
| Segment | Assets (Rs lakh) | Liabilities (Rs lakh) |
|---|---|---|
| Textile | 4,797.82 | 3,947.98 |
| Real Estate | 794.53 | 500.00 |
Management Commentary
The company's management noted that there was no real estate income recognized during the quarter.
Auditor's Review
The unaudited financial results for the quarter were reviewed by the Audit Committee and approved by the Board of Directors at their meeting. The company's statutory auditors, M/s. CSK Prabhu & Co, Chartered Accountants, have submitted an unmodified opinion on these financial results.
Conclusion
Sri Ramakrishna Mills (Coimbatore) Ltd faces challenges in its textile segment, which have significantly impacted its overall financial performance for the quarter. While the real estate segment shows improvement, it hasn't been sufficient to offset the losses in the textile business. The company's management and stakeholders will likely be focusing on strategies to improve the performance of the textile segment and capitalize on the growth in the real estate division in the coming quarters.
Historical Stock Returns for Sri Ramakrishna Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.73% | +5.91% | -16.00% | -3.06% | -40.07% | +350.00% |
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