Madhucon Projects Limited Restructures Board with New Appointments and Resignation

Madhucon Projects Limited has announced significant changes to its board of directors, as approved in a board meeting held on August 9, 2025. The company has appointed two new directors and accepted the resignation of an independent director, reshaping its leadership structure.

Board Changes

The following changes were approved by the board:

New Appointments

Mr. Sambasiva Rao Jasty (DIN: 09526475) has been appointed as an additional director.
Mr. Turlapati Venkata Sundara Jawaharlal Nehru (DIN: 02072398) has been appointed as an additional director in the position of "Independent Director" for a term of 5 years, until August 8, 2030.

Resignation

Mr. P. Madhava Rao (DIN: 00385838) has resigned from his position as Independent Director, citing personal reasons.

Details of New Appointees

Mr. Sambasiva Rao Jasty

Designation: Director
Experience: Nearly 24 years in Finance & Accounts
Expertise: Operational efficiency, statutory & internal compliance, cost reduction, banking, and financial management
Key Skills: Advisory to senior management, preparation of financial statements, and business turnaround

Mr. Turlapati Venkata Sundara Jawaharlal Nehru

Designation: Non-Executive Independent Director
Term: 5 years (subject to shareholder approval)
Experience: 22 years in senior management positions
Expertise: Administration, Business Development, Production & Site Engineering, Public Relations, and CSR activities
Previous Roles: Independent director at Power Mech Projects Ltd., Full-Time director at Power Mech Infra Ltd.

Resignation of Mr. P. Madhava Rao

Mr. P. Madhava Rao has stepped down from his role as Independent Director due to personal health issues and other reasons. In his resignation letter, Mr. Rao expressed gratitude for the support and encouragement he received during his tenure.

Governance Implications

These board changes are subject to necessary regulatory filings and, in the case of Mr. Nehru's appointment as Independent Director, shareholder approval at the upcoming 35th Annual General Meeting. The restructuring aims to bring fresh perspectives and expertise to Madhucon Projects Limited's leadership team.

The company has confirmed that the new appointments comply with SEBI regulations, including the circular dated June 20, 2018. Both new directors are not related to any existing directors of the company, ensuring independence in board decisions.

Investors and stakeholders should note that these changes may influence the company's strategic direction and governance practices in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.46%	-11.85%	-15.88%	-12.10%	-44.44%	+104.92%

Madhucon Projects Limited , a construction and infrastructure development company, has reported a standalone profit for the quarter ended September 30, despite ongoing challenges with its subsidiaries and auditor concerns. The company's financial results reveal a mixed picture of improved profitability alongside significant structural issues.

Financial Performance

Madhucon Projects reported a standalone profit of ₹469.40 lakh for Q2, a substantial improvement from the loss of ₹240.13 lakh in the same period last year. However, the company's revenue from operations declined to ₹10,765.01 lakh from ₹16,280.56 lakh year-on-year.

Financial Metric	Q2 (₹ in lakh)	Q2 Previous Year (₹ in lakh)	Change
Profit/(Loss)	469.40	(240.13)	+295.5%
Revenue	10,765.01	16,280.56	-33.9%

Auditor Concerns and Subsidiary Issues

The company's auditors have raised significant concerns about the carrying value of equity investments worth ₹53,408.43 lakh in subsidiaries. Some of these subsidiaries are facing eroded net worth and going concern issues. During the quarter, Madhucon Projects wrote off investments of ₹7,637.67 lakh in its subsidiary Madhucon Infra Limited and ₹738.01 lakh in step-down subsidiary Madurai Tuticorin Expressways Limited.

Several step-down subsidiaries, including Ranchi Expressways, Trichy-Thanjavur Expressways, and Barasat-Krishnagar Expressways, are undergoing Corporate Insolvency Resolution Process (CIRP).

Regulatory Actions

The Enforcement Directorate has provisionally attached properties worth ₹176.86 crore belonging to the Madhucon Group in connection with a case against Ranchi Expressway Limited under the Prevention of Money Laundering Act (PMLA), 2002.

Board Changes

The company's Board has accepted the resignation of Independent Director Mrs. Ch. Lakshmi Kumari, effective November 8.

Consolidated Performance

On a consolidated basis, Madhucon Projects reported a loss of ₹13,067.23 lakh for Q2, compared to a loss of ₹515.55 lakh in the same quarter last year. The consolidated revenue from operations decreased to ₹12,939.79 lakh from ₹18,994.61 lakh year-on-year.

Consolidated Metric	Q2 (₹ in lakh)	Q2 Previous Year (₹ in lakh)	Change
Loss	(13,067.23)	(515.55)	-2435.5%
Revenue	12,939.79	18,994.61	-31.9%

Conclusion

While Madhucon Projects has shown improvement in its standalone profitability, the company faces significant challenges with its subsidiaries and ongoing regulatory scrutiny. The substantial write-offs and insolvency proceedings of step-down subsidiaries indicate deep-rooted issues within the group. Investors and stakeholders should closely monitor the company's efforts to address these concerns and its ability to maintain profitability in the face of declining revenues.