Tamil Nadu Newsprint & Papers Limited (TNPL) has appointed Mathew Thomas as an Independent Director following shareholder approval through a postal ballot process. This appointment strengthens the company's board with experienced professionals.

Key Details of the Appointment

• Appointee: Thiru Mathew Thomas (DIN: 09688311)
• Position: Independent Director
• Appointment Type: Independent Director (approved by shareholders)

About Mathew Thomas

Mathew Thomas brings experience to TNPL's board:

• 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

Shareholder Approval Process

TNPL conducted a postal ballot to seek shareholder approval for the appointment:

• Shareholders approved the appointment with the requisite majority
• The process aligns with the company's commitment to corporate governance

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

TNPL's appointment of Mathew Thomas as an Independent Director reflects its commitment to enhancing board diversity and leveraging expertise from the technology sector. This move is expected to contribute to the company's governance structure and strategic direction.

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.