R&B Denims Limited , a textile company listed on the Indian stock exchanges, has announced the passing of Mrs. Mohinikumari Borana, a significant member of the company's Promoter Group. The news comes as a solemn update for the company's stakeholders and the market.

Key Details of the Announcement

• Deceased: Mrs. Mohinikumari Borana
• Relation to Company: Mother of two company directors and part of the Promoter Group
• Shareholding: 52,500 equity shares
• Directors Affected: Mr. Rajkumar Mangilal Borana and Mr. Ankur Mangilal Borana

Implications for Company Structure

Following Mrs. Borana's demise, several changes will occur in the company's structure:

1. Promoter Group Status: Mrs. Mohinikumari Borana will cease to be part of the Promoter Group of R&B Denims Limited.
2. Regulatory Compliance: This change is in accordance with Regulation 31A(6)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
3. Share Transmission: The company will process the transmission of Mrs. Borana's shareholding to her legal heirs or nominees.
4. Interim Arrangement: Until the completion of the transmission process, Mrs. Borana's shareholding will continue to be reflected in her name.

Company's Official Statement

R&B Denims Limited has officially informed the stock exchanges about this development, adhering to the regulatory requirements under Regulation 30 and 31A of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

The company's management expressed their condolences and assured stakeholders that all necessary procedures regarding the change in shareholding and Promoter Group composition would be carried out in compliance with regulatory norms.

This event, while primarily a personal loss for the Borana family, also represents a change in the company's ownership structure that investors and market watchers may need to take note of. The market will be observing how this transition affects the company's governance and operations, if at all, in the coming period.

R&B Denims , a prominent player in the textile industry, has reported a robust financial performance for the first quarter. The company's consolidated net profit soared by 61% year-over-year, showcasing strong growth despite margin pressures.

Financial Highlights

Performance Analysis

The company's financial results reflect a strong recovery and growth trajectory. The substantial increase in revenue indicates robust demand for R&B Denims' products and effective market strategies. The 61% jump in net profit is particularly noteworthy, demonstrating the company's ability to translate top-line growth into bottom-line results.

However, it's important to note that the EBITDA margin contracted to 10.99% from 13.39% in the previous year period. This suggests that while the company has successfully grown its revenue and profit, it faced some pressure on profitability, possibly due to increased input costs or operational expenses.

Management Commentary

Amit Dalmia, Chairman and Managing Director of R&B Denims, stated in the company's filing, "We are pleased with our strong start to the fiscal year, with significant growth in both revenue and net profit. While we navigate challenges in the operating environment, our focus remains on operational efficiency and market expansion."

Segment Reporting Update

The company has announced that it will cease reporting Solar and Wind Energy activities as a separate segment. These operations, previously undertaken to support the core textile business by reducing power costs, will no longer be managed or reviewed separately by the Chief Operating Decision Maker.

Looking Ahead

As R&B Denims continues to demonstrate strong growth, investors and market observers will be keen to see if the company can maintain this momentum while addressing the margin pressures. The company's ability to balance growth with profitability will be crucial in the coming quarters.

Investors are advised to consider the company's full financial reports and future guidance for a comprehensive understanding of its financial position and prospects.