Rajapalayam Mills , a prominent player in the textile industry, has made significant announcements following its board meeting held on August 11, 2025. The company has appointed a new independent director and released its financial results for the first quarter.

New Independent Director Appointment

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has appointed Justice Smt. Chitra Venkataraman (Retd) as an Additional Director under the Independent Director category. This appointment is effective from August 11, 2025, and she will hold office until the conclusion of the ensuing Annual General Meeting.

Justice Venkataraman, aged 73, brings a wealth of experience to the board. A graduate in Economics from Ethiraj College, Chennai, and holding a law degree from Law College, Chennai, she specialized in Direct and Indirect tax laws during her legal career. Her professional journey includes:

• Serving as a Government Pleader from 1991 to 1995
• Standing counsel for Income Tax for a decade
• Elevated to the position of Judge at the Madras High Court in 2005, retiring in April 2014

Her corporate governance experience is extensive, having served as an Independent Director on the boards of LMW Limited, The Ramco Cements Limited, and Ramco Industries Limited. Currently, she holds Independent Director positions at Ramco Systems Limited and Super Sales India Limited.

Financial Performance for Q1

Rajapalayam Mills reported its unaudited financial results for the quarter ended June 30, 2025:

On a standalone basis, the company reported:

• Total income of ₹19214.00 lakhs
• Net loss of ₹1225.00 lakhs

Consolidated results show:

• Net profit of ₹812.00 lakhs
• The turnaround was primarily due to a ₹2037.00 lakhs share of profit from associates

Other Key Decisions

1. The Board has approved providing an additional Corporate Guarantee of up to ₹50 crore for Sandhya Spinning Mill Limited.

2. Subject to shareholder approval, the Board has sanctioned:

   • Additional investments, loans, guarantees, and securities up to ₹150 crore.
   • Material related party transactions with Ramco Industries Limited, Sandhya Spinning Mill Limited, Sri Vishnu Shankar Mill Limited, and The Ramaraju Surgical Cotton Mills Limited, up to ₹450 crore each for three financial years (FY 2025-26 to FY 2027-28).

These strategic decisions and the appointment of Justice Venkataraman reflect Rajapalayam Mills' efforts to strengthen its governance and financial position in a challenging market environment.

Rajapalayam Mills , a prominent player in the textile industry, has reported a significant improvement in its financial performance for the first quarter. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) witnessed a substantial increase, rising to 229.00 million rupees from 159.00 million rupees in the corresponding period last year.

Improved Operational Efficiency

The company's EBITDA margin saw a notable enhancement, climbing to 12.13% from 7.33% year-over-year. This improvement indicates a strong focus on operational efficiency and profitability within the organization.

Financial Highlights

While the detailed financial results are yet to be released, the available data suggests a positive trend in the company's performance. The significant growth in EBITDA and the expansion of the EBITDA margin are encouraging signs for stakeholders.

Board Meeting Outcomes

In a recent board meeting, Rajapalayam Mills' Board of Directors made several key decisions:

1. Appointment of Independent Director: Justice Smt. Chitra Venkataraman (Retd) has been appointed as an Additional Director under the Independent Director category. She will hold office until the conclusion of the ensuing Annual General Meeting.

2. Corporate Guarantee: The Board has approved providing an additional Corporate Guarantee of up to 50.00 crore rupees for Sandhya Spinning Mill Limited.

3. Investments and Loans: Subject to shareholder approval, the Board has agreed to make investments, give loans, guarantees, and security up to an additional limit of 150.00 crore rupees.

4. Related Party Transactions: The Board has approved entering into material related party transactions with Ramco Industries Limited, Sandhya Spinning Mill Limited, Sri Vishnu Shankar Mill Limited, and The Ramaraju Surgical Cotton Mills Limited, up to 450.00 crore rupees each for three financial years.

5. Financial Results: The Board has approved the Un-audited Financial Results (Standalone and Consolidated) for the quarter ended June 30.

These decisions reflect the company's strategic moves to strengthen its financial position and governance structure.

Looking Ahead

With the improved EBITDA performance and the recent board decisions, Rajapalayam Mills appears to be positioning itself for sustained growth. The appointment of Justice Smt. Chitra Venkataraman as an Independent Director also signals the company's commitment to strong corporate governance.

As the textile industry continues to evolve, Rajapalayam Mills' focus on operational efficiency and strategic financial management may well be key factors in its future performance.