Financial Results Approval

The Board of Directors approved and took on record the audited financial results for the quarter and year ended March 31, 2026, both on standalone and consolidated basis. The results were audited by statutory auditors M/s S R Batliboi & Co. LLP (Firm Registration No. 301003E/E300005) and reviewed by the Audit Committee in their meeting held earlier on the same day.

Dividend Declaration

The Board recommended a final dividend of ₹1.25 per equity share (face value ₹10 each) for the financial year ended March 31, 2026, subject to approval by shareholders at the ensuing 19th Annual General Meeting. The record date for determining eligibility was fixed as Wednesday, July 29, 2026. Dividend payment will be made after the AGM but not later than thirty days therefrom, subject to tax deduction.

Annual General Meeting

The 19th Annual General Meeting will be held on Wednesday, August 5, 2026, through Video Conferencing/Other Audio-Visual Means. The cut-off date for determining members eligible to vote and attend was fixed as Wednesday, July 29, 2026.

Standalone Financial Performance (FY2026)

  • Revenue from Operations: ₹11,094.1 lakhs (FY2025: ₹9,976.3 lakhs)
  • Total Income: ₹11,165.3 lakhs (FY2025: ₹10,138.6 lakhs)
  • Profit before Exceptional Item and Tax: ₹544.0 lakhs (FY2025: ₹745.5 lakhs)
  • Exceptional Item: ₹(52.3) lakhs (related to New Labour Codes impact)
  • Profit before Tax: ₹491.7 lakhs (FY2025: ₹745.5 lakhs)
  • Tax Expense: ₹103.3 lakhs (Current: ₹192.4 lakhs, Deferred: ₹(84.7) lakhs, Prior period adjustment: ₹(4.4) lakhs)
  • Profit for the Year: ₹388.4 lakhs (FY2025: ₹576.0 lakhs)
  • Earnings Per Share: ₹5.39 basic & diluted (FY2025: ₹7.99)
  • Paid-up Equity Share Capital: ₹720.8 lakhs (post-bonus issue)

Quarterly Standalone Performance (Q4 FY2026)

  • Revenue from Operations: ₹2,763.9 lakhs (Q4 FY2025: ₹2,697.3 lakhs)
  • Profit before Tax: ₹144.2 lakhs (Q4 FY2025: ₹220.3 lakhs)
  • Profit for the Quarter: ₹128.0 lakhs (Q4 FY2025: ₹169.1 lakhs)
  • EPS: ₹1.78 basic & diluted (Q4 FY2025: ₹2.35)

Consolidated Financial Performance (FY2026)

  • Revenue from Operations: ₹18,942.5 lakhs
  • Profit before Tax: ₹451.4 lakhs
  • Profit for the Year: Not explicitly stated in summary tables

Balance Sheet Position (Standalone as at March 31, 2026)

  • Total Assets: ₹10,125.1 lakhs (Mar 2025: ₹10,318.3 lakhs)
  • Equity Share Capital: ₹720.8 lakhs (Mar 2025: ₹360.4 lakhs)
  • Other Equity: ₹6,359.2 lakhs (Mar 2025: ₹6,579.0 lakhs)
  • Total Equity: ₹7,080.0 lakhs (Mar 2025: ₹6,939.4 lakhs)
  • Non-current Liabilities: ₹413.8 lakhs
  • Current Liabilities: ₹2,631.3 lakhs

Cash Flow Statement (Standalone FY2026)

  • Net cash from Operating Activities: ₹512.7 lakhs
  • Net cash from Investing Activities: ₹34.2 lakhs
  • Net cash used in Financing Activities: ₹(1,542.8) lakhs
  • Net increase in Cash: ₹3 lakhs

Key Notes to Accounts

1. Bonus Issue: On July 21, 2025, the company issued 3,60,39,312 equity shares as bonus shares in 1:1 ratio, increasing share capital from ₹360.4 lakhs to ₹720.8 lakhs. All EPS figures have been adjusted retrospectively.

2. Goodwill Amortization: Goodwill of ₹26,699 lakhs arising from April 2016 amalgamation was fully amortized as of March 31, 2026, with quarterly charge of ₹667 lakhs. Auditors noted this should have been accounted under 'Pooling of Interest Method' per Ind AS 103.

3. Income Tax Litigation:

  • Assessment Year 2020-21: ₹2,816 lakhs claim disallowed (tax impact ₹984 lakhs), appeal filed
  • Assessment Years 2018-19 & 2019-20: Reopened for similar claims totaling ₹8,761 lakhs (tax impact ₹3,044 lakhs)
  • Writ petition filed with Calcutta High Court on May 21, 2024
  • Contingent liability recognized

4. Section 10AA Explanation Challenge: Company appealed Division Bench of Calcutta High Court regarding vires of Explanation to Section 10AA(1) of Income Tax Act, involving ₹832 lakhs tax amount. Matter admitted on January 10, 2024.

5. New Labour Codes Impact: Recognized exceptional item of ₹523 lakhs (₹482 lakhs in Q3 and ₹41 lakhs in Q4) for estimated impact of new labour codes on employee benefits.

6. New Subsidiary: UK-based step-down subsidiary Monocon International Refractories Limited incorporated wholly-owned subsidiary Monocon Australia Ply Limited on July 4, 2025.

7. Segment Information: Company operates in single segment - manufacture, trading, sale of refractories and services. Geographical revenue split: India ₹8,640.8 lakhs, Outside India ₹10,301.7 lakhs.

Auditor's Emphasis Matters

Auditors highlighted two emphasis matters:

1. Historical amalgamation accounting using Purchase Method instead of Pooling of Interest Method per Ind AS 103

2. Uncertainty regarding outcome of income tax appeals pending with Calcutta High Court