Financial Analyst Summary

Company Response to Exchange Query

Date of Communication: September 23, 2025

Nature of Query: The National Stock Exchange of India Limited raised two specific observations regarding the company's financial results submission for the quarter ended June 30, 2025:

1. XBRL Discrepancies: The exchange identified discrepancies in the XBRL filing of financial results. The company responded by requesting specific details of these discrepancies to review and take necessary corrective actions, promising to submit a revised XBRL filing promptly upon receipt of the information.

2. Machine Readable Form: The exchange noted that a machine-readable/legible copy of the financial results was not submitted. The company clarified that the results were indeed submitted in the required format on August 12, 2025, and re-enclosed a legible copy with their response for the exchange's records.

Details of Financial Results Clarification

The financial results for the quarter ended June 30, 2025 (Q1 FY26), were approved by the Board of Directors on August 12, 2025.

Standalone Financial Performance (Rs. in Lakhs):

  • Total Income: Decreased to 3,235 from 3,111 in Q1 FY25 and 4,091 in Q4 FY25.
  • Revenue from Operations: Decreased to 2,810 from 3,084 in Q1 FY25 and 4,007 in Q4 FY25.
  • Other Income: Increased to 425 from 27 in Q1 FY25.
  • Total Expenses: Were 3,417.
  • Profit/(Loss) before Tax: Stood at a loss of (182), compared to a profit of 119 in Q1 FY25 and 484 in Q4 FY25.
  • Net Profit After Tax: Stood at a loss of (170), compared to a profit of 4 in Q1 FY25 and 399 in Q4 FY25.
  • Earnings Per Share (Basic & Diluted): (Rs. 0.06) per share of Re. 1/- each.

Consolidated Financial Performance (Rs. in Lakhs):

  • Total Income: Was 3,258.
  • Revenue from Operations: Was 2,810.
  • Profit/(Loss) before Tax: Stood at a loss of (224).
  • Net Profit After Tax: Stood at a loss of (212).
  • Earnings Per Share (Basic & Diluted): (Rs. 0.07) per share of Re. 1/- each.

The consolidated results include the financials of the wholly-owned subsidiary Anuchem B.V.B.A, Belgium, which reported a net loss before tax of Rs. 64.27 lakhs for the quarter. The results exclude Calchem Industries (India) Limited post its divestment.

Key Notes from Financial Statements:

  • The company is primarily engaged in manufacturing chemical intermediates, heavy organic chemicals, and performance chemicals.
  • Executive Directors waived approximately 55% of their remuneration for the quarter, aggregating to Rs. 69 Lakhs.
  • The company divested its entire investment in its wholly-owned subsidiary, Calchem Industries (India) Limited, on May 28, 2025. The sale, for a total consideration of Rs. 13.00 Crore to H.G. Partners LLP (a related party), was ratified by the Board based on the Audit Committee's recommendation.
  • Mr. Rakesh R. Kothari resigned as Chief Financial Officer effective August 14, 2025.
  • The Board appointed Mr. Vimal Jain as President (Operations and Finance) and Mr. Jayesh Shah as Vice President (Operations and Finance) on August 12, 2025.
  • The company confirmed there was no deviation or variation in the use of proceeds (Rs. 49.91 Crores) raised through a Rights Issue completed on October 11, 2024.

Topic Tags: Regulatory Response, Financial Results Clarification, Subsidiary Divestment, Management Change, Executive Remuneration Waiver, Compliance