Sri Nachammai Cotton Mills News

Sri Nachammicotton Mills Reports Quarterly Results with Preference Share Redemption Extension

Sri Nachammicotton Mills Limited published its unaudited financial results for the quarter and half year ended September 30, 2025. The company had issued redeemable preference shares worth Rs. 18 crores to promoters in April 2012 with a 13-year maturity period, originally due for redemption by April 2025. Preference shareholders approved an extension of the redemption period by an additional 7 years through resolutions passed in September and December 2024. This modification resulted in derecognition of the existing financial liability and recognition of a new liability at present value of Rs. 8.41 crores, creating a one-time income of Rs. 6.58 crores recognized as an exceptional item. The company's power and fuel costs decreased to Rs. 137.48 lakhs compared to Rs. 190.08 lakhs in the corresponding previous quarter, attributed to captive use of electricity generated from their cogeneration plant commissioned in 2024-25. The company operates in cotton and yarn manufacturing with a single business segment.

Sri Nachammai Cotton Mills Reports ₹5.38 Crore Net Profit in Q1 Despite Operational Challenges

Sri Nachammai Cotton Mills Limited announced its quarterly results for the period ended June 30, 2025, showing a net profit of ₹5.38 crores compared to a loss of ₹3.21 crores in the same quarter last year. Revenue from operations increased 22.22% to ₹17.00 crores, while total expenses decreased 21.37% to ₹19.48 crores. The company reported exceptional income of ₹6.59 crores, which contributed significantly to the profit turnaround. Earnings per share improved to ₹12.56 from -₹7.48 previously. The textile manufacturer is operating only one unit for three shifts due to poor yarn demand and continues facing challenges from the disparity between cotton and yarn prices. The company has implemented cost-control measures and installed a 2MW solar plant to reduce power costs, which decreased to ₹1.44 crores from ₹1.86 crores year-over-year. The Board approved these results on August 11, 2025, and scheduled the 45th Annual General Meeting for September 26, 2025, via video conferencing.