Tamil Nadu Newsprint & Papers Limited (TNPL) has initiated a postal ballot process to seek shareholder approval for the appointment of Mathew Thomas as an Independent Director. The move comes as part of the company's efforts to strengthen its board with experienced professionals.

Key Details of the Appointment

• Appointee: Mathew Thomas (DIN: 09688311)
• Position: Independent Director
• Term: Three years (October 27, 2025 to October 26, 2028)
• Appointment Type: Additional Independent Director (subject to shareholder approval)

About Mathew Thomas

Mathew Thomas brings a wealth of experience to TNPL's board:

• Age: 55 years
• Educational Background: First Class & Honors in Mechanical Engineering from University of Madras
• Professional Experience: Over three decades in the IT industry
• Previous Associations: Oracle, SAP, Wipro, and Ernst & Young

Postal Ballot and E-Voting Details

TNPL has outlined the following process for shareholder voting:

• E-Voting Period: October 31, 2025 (9:00 AM) to November 29, 2025 (5:00 PM)
• Result Declaration: On or before December 2, 2025
• Voting Mechanism: Remote e-voting through Central Depository Services (India) Limited (CDSL)

Compliance and Regulatory Aspects

The appointment is in line with regulatory requirements:

• Complies with Sections 149, 152, and other applicable provisions of the Companies Act, 2013
• Adheres to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Mathew Thomas has submitted declarations confirming his independence as per Section 149(6) of the Companies Act, 2013

Shareholder Action Required

Eligible shareholders are encouraged to participate in the voting process through the e-voting platform provided by CDSL. The company has emphasized the importance of this resolution in strengthening its corporate governance structure.

TNPL's move to appoint Mathew Thomas as an Independent Director reflects its commitment to enhancing board diversity and leveraging expertise from the technology sector. Shareholders will play a crucial role in this decision through their participation in the postal ballot process.

Tamil Nadu Newsprint & Papers Ltd (TNPL) has reported a significant increase in its net profit for the second quarter, despite facing pressure on its profit margins. The company's financial performance shows a mixed picture of growth and challenges.

Financial Highlights

TNPL has demonstrated robust top-line growth, with revenue increasing by 21.40% year-over-year to ₹1,110.00 crore in the second quarter. This substantial rise in revenue has contributed to a remarkable 212.00% jump in net profit, which stood at ₹81.00 crore compared to ₹26.00 crore in the same period last year.

Profitability Concerns

Despite the impressive growth in revenue and net profit, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) remained relatively flat at ₹123.00 crore, compared to ₹124.00 crore in the previous year. This indicates potential challenges in operational efficiency or cost management.

The EBITDA margin saw a significant compression, declining from 13.57% to 11.09%. This 248 basis point reduction in margin suggests that the company is facing pressure on its profitability, possibly due to increased input costs or competitive pricing in the market.

Management Initiatives

The company's board of directors has taken several key decisions in their recent meeting:

1. Approval of unaudited financial results for Q2 and H1.
2. Appointment of Thiru Mathew Thomas as an Additional Independent Director for a three-year term, subject to shareholder approval.
3. Initiation of a postal ballot process for shareholder approval of the new director appointment.

These actions indicate that TNPL is focusing on strengthening its corporate governance and seeking to bring in fresh perspectives to its board.

Outlook

While TNPL has shown strong growth in revenue and net profit, the pressure on its EBITDA margin warrants attention. The company may need to focus on cost optimization and operational efficiency to maintain its profitability in the face of growing revenues.

Investors and analysts will likely keep a close eye on how TNPL manages its costs and improves its margins in the coming quarters, especially given the competitive nature of the paper industry and potential fluctuations in raw material costs.

The appointment of a new independent director might also signal TNPL's intentions to leverage new perspectives for improving its operations and competitiveness in the market.

As TNPL navigates these challenges and opportunities, its ability to maintain revenue growth while improving profitability will be crucial for its long-term performance and shareholder value creation.