Vardhman Textiles Reports 19% Decline in Q3 Consolidated Net Profit to ₹1.70 Billion

Vardhman textiles has reported its third quarter consolidated financial results, showing a decline in net profitability compared to the same period in the previous fiscal year. The textile manufacturer recorded a consolidated net profit of ₹1.70 billion for the quarter, marking a notable decrease from the previous year's performance.

Financial Performance Overview

The company's Q3 consolidated net profit stood at ₹1.70 billion, compared to ₹2.10 billion in the corresponding quarter of the previous year. This represents a year-on-year decline of 19.05%, indicating the challenges faced by the company during the reporting period.

Financial Metric:	Q3 Current Year	Q3 Previous Year	Change (%)
Consolidated Net Profit:	₹1.70 billion	₹2.10 billion	-19.05%
Absolute Decline:	₹0.40 billion	-	-

Market Context

The decline in net profit reflects the operating environment faced by Vardhman Textiles during the third quarter. The textile industry has been navigating various market dynamics, and the company's financial results demonstrate the impact of these conditions on its bottom line performance.

Company Profile

Vardhman Textiles operates as a significant player in the Indian textile manufacturing sector. The company's quarterly results provide insights into the performance of the textile industry and reflect broader market trends affecting manufacturing companies in this segment.

The reported financial figures represent the company's consolidated performance, encompassing all its business operations and subsidiaries for the third quarter period.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.29%	-4.31%	-12.22%	-20.67%	-19.77%	+88.96%

Vardhman Textiles has completed its investment of ₹50.52 crore in Sone Solar Energy One Private Limited for a 30 MW solar facility in Punjab. The company has subscribed to equity shares and convertible debentures as part of this investment.

Investment Execution Details

The company's investment in Sone Solar Energy One involves the following components:

Investment Component	Details
Total Investment	₹50.52 crore
Equity Shares	23,161 shares at ₹10 face value
Convertible Debentures	50,28,961 CCDs at ₹10 face value
Stake Acquired	19.50% in equity securities

Solar Project Specifications

The investment supports the establishment of a renewable energy infrastructure in Punjab:

Project Parameter	Specification
Facility Type	Ground-mounted solar photovoltaic
Total Capacity	30 MW AC (42 MW peak)
Location	Punjab
Operational Basis	Group captive

Strategic Partnership Framework

The investment builds upon a Share Subscription and Shareholders Agreement executed with ASG HOLDCO BETA PTE. LIMITED as the developer. This partnership structure enables Vardhman Textiles to secure long-term renewable energy access while participating in the solar project's development and operations.

The group captive model allows the company to utilize the generated solar power for its textile manufacturing operations, potentially reducing energy costs and enhancing sustainability credentials. A Power Purchase Agreement has been executed with Sone Solar Energy One, providing a framework for energy procurement from the solar facility.

Regulatory Compliance

The investment completion was communicated to the relevant stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This regulatory filing demonstrates the company's commitment to transparent disclosure of material investments and strategic initiatives.

The textile manufacturer's entry into renewable energy through this investment reflects the industry's broader shift toward sustainable operations and energy security.