Welcast Steels Plant Closure Leads to ₹5.3Cr Loss
Earnings & Results
Price while announcement
Current price (CMP)
Tulsian AI News Agent
·
17th Aug 2026
Key Financial Figures
- Revenue from Operations: ₹4897.35 lakh (FY25: ₹8450.30 lakh)
- Other Income: ₹198.69 lakh (FY25: ₹168.77 lakh)
- Total Income: ₹5096.04 lakh (FY25: ₹8619.07 lakh)
- EBITDA: (₹90.10) lakh (FY25: ₹50.61 lakh)
- Finance Costs: ₹7.18 lakh (FY25: ₹7.01 lakh)
- Depreciation & Amortization: ₹62.02 lakh (FY25: ₹78.95 lakh)
- Exceptional Items (Employee retrenchment): ₹328.19 lakh (FY25: Nil)
- Profit Before Tax: (₹487.49) lakh (FY25: (₹35.35) lakh)
- Tax Expense: ₹42.73 lakh (FY25: (₹1.61) lakh)
- Net Loss: ₹530.22 lakh (FY25: ₹33.74 lakh)
- Other Comprehensive Income: (₹0.28) lakh (FY25: (₹9.16) lakh)
- Total Comprehensive Loss: ₹530.50 lakh (FY25: ₹42.90 lakh)
- EPS: (₹83.09) per share (FY25: (₹5.29) per share)
- Paid-up Share Capital: ₹63.84 lakh (unchanged)
- Cash & Cash Equivalents: ₹77.01 lakh (FY25: ₹244.86 lakh)
Operational Highlights
- Production: 5,254 tons of Grinding Media (FY25: 9,539 tons)
- Sales: 4,582 tons of Grinding Media (FY25: 9,650 tons)
- Plant Closure: Manufacturing operations permanently closed at Bengaluru plant effective 15 December 2025
- Workforce Reduction: Retrenched all employees except 8 essential staff for post-closure activities
- Capacity Utilization: Significantly reduced due to plant closure in second half of financial year
Dates of Action
- Board Resolution for Plant Closure: 15 October 2025
- Plant Shutdown Date: 15 December 2025
- Financial Year End: 31 March 2026
- AGM Date: 10 September 2026 at 11:00 AM IST
- E-voting Period: 7 September 2026 (9:00 AM) to 9 September 2026 (5:00 PM)
- Cut-off Date for E-voting: 3 September 2026
Parties Involved
- Stock Exchange: BSE Limited
- Registrar & Share Transfer Agent: Bigshare Services Pvt. Ltd.
- E-voting Agency: Central Depository Services (India) Limited (CDSL)
- Statutory Auditors: Dagliya & Co., Chartered Accountants
- Internal Auditors: Talati & Talati LLP
- Secretarial Auditors: Tushar Vora & Associates
- Scrutinizer for E-voting: Mr. Tushar M. Vora
- Holding Company: AIA Engineering Ltd (74.85% shareholding)
Capital Structure Impact
- No change in share capital during the year
- No shares issued, bought back, or granted as stock options
- Equity shares remain at 638,161 shares of ₹10 each
Cash Flow Implications
- Operating Activities: Net cash inflow of ₹283.98 lakh
- Investing Activities: Net cash outflow of ₹451.50 lakh
- Financing Activities: Net cash outflow of ₹0.33 lakh
- Net Decrease in Cash: ₹167.85 lakh
- Dividend payment of ₹0.33 lakh (previous year: ₹16.23 lakh)
Related Party Transactions
- Sales to AIA Engineering Ltd: ₹1077.93 lakh (FY25: ₹1025.76 lakh)
- Purchases from AIA Engineering Ltd: ₹80.23 lakh (FY25: Nil)
- All transactions conducted at arm's length basis
- Contract Manufacturing Agreement with AIA Engineering Ltd effective from 1 January 2024 for 5 years
Corporate Governance
- Compliance with all mandatory provisions of SEBI LODR Regulations
- Board comprises 4 Non-Executive Non-Independent and 2 Independent Directors
- 5 Board meetings and 4 Audit Committee meetings held during the year
- Whistle Blower Policy and Vigil Mechanism in place
- No fraud reported by auditors
Forward-looking Statements
- No plans to resume operations in foreseeable future
- No capital expenditure plans due to plant closure
- Labor disputes pending before various courts and judicial forums
- Financial statements prepared on non-going concern basis