NewsEarningsZR2 Bioenergy Reports Profit of ₹30.85 Crore in Q1 Despite Zero Revenue from OperationsZR2 Bioenergy Reports Profit of ₹30.85 Crore in Q1 Despite Zero Revenue from Operations
Gujchem Distilleries, formerly Gujchem Distillers India Limited, announced a net profit of ₹30.85 crore for Q1, compared to a loss of ₹79.05 crore in the same quarter last year. The company saw a 950.45% increase in other income to ₹46.43 lakh and reduced total expenses by 81.23% to ₹15.67 lakh. Basic EPS improved from -₹2.21 to ₹0.86. ZR2 Group Holdings Limited acquired a 61% stake, becoming the new promoter. The company incorporated a wholly-owned subsidiary, ZR2 Solar Private Limited, for renewable energy operations. It also raised capital through the issuance of convertible warrants and compulsory convertible debentures.
*this image is generated using AI for illustrative purposes only.
Gujchem Distilleries (formerly known as Gujchem Distillers India Limited) has announced its financial results for the first quarter, reporting a net profit of ₹30.85 crore. This marks a significant turnaround from the loss of ₹79.05 crore reported in the same quarter of the previous year.
Financial Highlights
The company's performance for Q1 is summarized in the following table:
| Particulars (₹ in Lakhs) | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue from Operations | - | - | - |
| Other Income | 46.43 | 4.42 | 950.45% |
| Total Income | 46.43 | 4.42 | 950.45% |
| Total Expenses | 15.67 | 83.47 | -81.23% |
| Profit Before Tax | 30.76 | -79.05 | - |
| Net Profit | 30.85 | -79.05 | - |
| Basic EPS (₹) | 0.86 | -2.21 | - |
Key Observations
Other Income Boost: Despite no revenue from operations, ZR2 Bioenergy saw a substantial increase in other income, rising from ₹4.42 lakh to ₹46.43 lakh, a remarkable growth of 950.45%.
Expense Management: The company significantly reduced its total expenses from ₹83.47 lakh to ₹15.67 lakh, a reduction of 81.23%. This played a crucial role in turning the company's performance from loss to profit.
Profitability: ZR2 Bioenergy reported a net profit of ₹30.85 crore, compared to a net loss of ₹79.05 crore in the same quarter last year.
Earnings Per Share: The Basic Earnings Per Share (EPS) improved from -₹2.21 to ₹0.86.
Corporate Developments
The company has undergone significant changes:
Change in Control: ZR2 Group Holdings Limited acquired a 61% stake (21,77,110 equity shares) from the previous management, becoming the new promoter of the company.
Subsidiary Incorporation: ZR2 Solar Private Limited, a wholly-owned subsidiary of ZR2 Bioenergy, was incorporated. This subsidiary is set to operate in the renewable energy sector, focusing on generating, distributing, and supplying various forms of renewable energy.
Capital Raising: The company issued and allotted 2,59,22,000 convertible warrants at ₹65 per warrant and 1,23,50,000 compulsory convertible debentures at ₹65 each to promoter groups and strategic investors.
Jimmy Olsson, Managing Director of ZR2 Bioenergy Limited, signed off on the financial results, which were approved by the Board of Directors. The results have been subjected to a limited review by the statutory auditors, who expressed an unqualified opinion.
The company's transition into the renewable energy sector, coupled with its improved financial performance, signals a new direction for ZR2 Bioenergy Limited. Investors and stakeholders will be watching closely to see how the company leverages its new subsidiary and capital infusion to generate operational revenue in the coming quarters.
Historical Stock Returns for Gujchem Distilleries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.53% | -2.67% | -4.78% | +20.62% | -1.61% | +2,165.22% |
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