Board Meeting Outcomes

The Board meeting commenced at 8:00 AM and concluded at 3:05 PM. Key decisions included:

  • Took on record the Unaudited Financial Results (standalone and consolidated) for the quarter ended June 30, 2026, prepared as per Indian Accounting Standards (Ind-AS) under Regulation 33
  • Declared an Interim Dividend of ₹6 per equity share (60% on face value of ₹10 per share) for financial year 2026-2027
  • Fixed Wednesday, August 12, 2026 as the record date for dividend payment
  • Dividend will be paid on or before September 4, 2026

Financial Results Highlights (Standalone - Quarter Ended June 30, 2026)

  • Revenue from operations: ₹1,936.93 million (compared to ₹1,091.21 million in Q1 FY2026)
  • Other income: ₹24.00 million
  • Total Income: ₹1,960.93 million
  • Cost of goods sold: ₹939.89 million
  • Changes in inventories: (₹263.44) million
  • Employee benefits expense: ₹567.09 million
  • Finance costs: ₹34.97 million
  • Depreciation and amortization: ₹39.83 million
  • Other expenses: ₹250.40 million
  • Total Expenses: ₹1,568.74 million
  • Profit before tax: ₹392.19 million
  • Tax expense: ₹121.82 million (Current tax: ₹110.81 million, Deferred tax: ₹4.01 million, Prior Year tax: ₹7.00 million)
  • Profit for the period: ₹270.37 million
  • Earnings per share (Basic & Diluted): ₹18.53
  • Paid-up equity share capital: ₹145.89 million (face value ₹10 each)

Financial Results Highlights (Consolidated - Quarter Ended June 30, 2026)

  • Revenue from operations: ₹1,988.16 million
  • Other income: ₹17.70 million
  • Total Income: ₹2,005.86 million
  • Share of net loss of jointly controlled entity: (₹1.96) million
  • Profit before tax: ₹390.05 million
  • Tax expense: ₹121.82 million
  • Profit for the period: ₹268.23 million
  • Earnings per share: ₹18.39

Subsidiary Structure

The consolidated results include the following entities:

  • ASM Digital Technologies Inc, USA (Subsidiary)
  • ASM Digital Technologies Pte Ltd, Singapore (Subsidiary)
  • RV Forms & Gears LLP (Subsidiary)
  • ASM Technologies KK, Japan (Subsidiary)
  • ASM HHV Private Limited (Jointly controlled entity)
  • ASM Digital Technologies Co Ltd, Thailand (Step down Subsidiary)
  • ASM Engineering Pvt Limited, United Kingdom (subsidiary)
  • ASM Digital Engineering Pvt Limited, United Kingdom (Step down subsidiary)
  • ASM Technologies Viet Nam Company Limited, Vietnam (subsidiary)

Auditor's Emphasis of Matter

B.K. Ramadhyani & Co LLP highlighted two key matters in their review report:

Investment Valuation Issues:

  • Non-current investments in Eclectic 1Q (formerly Polylogyx) carried at cost of ₹8.03 million with disclosed fair value of ₹12.65 million
  • Investments in Lavelle Networks Private Limited carried at cost of ₹55.00 million with disclosed fair value of ₹64.25 million
  • Company is in process of obtaining valuation reports in accordance with Ind AS 109
  • Management unable to obtain necessary cash flow data and information for formal valuation due to restrictions
  • Management believes there has been substantial increase in value based on recent investments and expects no impairment

ERP System Implementation Issues:

  • Company implemented new ERP system TCS iON™ currently undergoing stabilization
  • Management addressing system bugs, process deficiencies/inaccuracies in areas including:
  • Opening balances at implementation
  • Inventory valuation
  • Amortization of prepaid expenses
  • Aging of debtors and creditors
  • Fixed asset register
  • Unbilled receivables
  • Company performed rectifications outside ERP system, including adjustments based on management estimates
  • Management represents unrectified errors not expected to have material impact
  • Corrective actions ongoing to stabilize ERP system

Other Auditor Qualifications

  • Did not review financial results of three foreign subsidiaries constituting total revenues of ₹24.49 million and net loss of ₹0.48 million for the quarter
  • Reliance on management certification for these subsidiaries
  • Figures for three months ended March 31, 2026 are balancing figures between audited full-year figures and reviewed year-to-date figures up to December 31, 2025

Additional Notes from Financial Statements

  • Overseas subsidiaries ASM Digital Technologies Pte Ltd and ASM Technologies KK - Japan have accumulated losses exceeding share capital, eroding net worth
  • ASM Digital Technologies Pte Ltd liabilities exceed assets by ₹23.10 million (SGD 316,236)
  • ASM Technologies KK liabilities exceed assets by ₹8.9 million (JPY 15,073,376)
  • Holding company authorized to infuse further funds as required
  • Management has action plan to reduce operating costs in coming years
  • Company believes going concern assumption remains appropriate
  • During quarter ended March 31, 2024, company made preferential allotment of 800,000 equity shares at premium of ₹460.70 per share
  • Issued share warrants of 2,814,390 convertible at ₹470.70 per warrant
  • Received total amount of ₹1,701.30 million towards preferential allotment
  • During quarter September 2025, allotted 1,556,984 equity shares
  • Funds utilized: ₹252.80 million for general corporate purposes, ₹892.80 million for organic and inorganic growth
  • Balance amount invested in fixed deposits and mutual funds as approved by Board

#Tags: #ASMTechnologies #Q1Results #InterimDividend #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral