Ludlow Jute & Specialities Ltd

Ludlow Jute & Specialities Limited: Trading Window closed from 1 October 2026 till 48 hours after the declaration of Financial Results for the Quarter ended 30 September 2026

Ratings details

• Total rated bank facilities: Rs 174.96 crore.
• Long-term rating: Crisil A-/Stable; Short-term rating: Crisil A2+.
• Rating agency: Crisil Ratings Limited.
• Under continuous surveillance; no new rating action announced.
• Rating letter dated Sep 18, 2026; valid till Mar 31, 2027.
• Prior period: A-/Stable (LT) and A2+ (ST).
• CRISIL: Ratings kept under continuous surveillance and review.
• Bank: Canara Bank; Bank Guarantee Rs 6cr; rating A2+.
• Bank: Canara Bank; Cash Credit Rs 79cr; rating A-/Stable.
• Bank: Canara Bank; Letter of Credit Rs 22cr; rating A2+.
• Bank: YES Bank; Term Loan Rs 17.83cr; rating A-/Stable.
• Bank: Canara Bank; Term Loan Rs 19.13cr; rating A-/Stable.
• Bank: YES Bank; Working Capital Demand Loan Rs 31cr; rating A2+.
• Total facilities: Rs 174.96 crore.
• No material change since last rating.
• Prior ratings were A-/Stable (LT) and A2+ (ST).
• Rating letter valid till Mar 31, 2027.

Chairman Emeritus creation

• Resolution 4 at the 47th AGM (11 Sept 2026) passed with requisite majority to insert Article 133.
• Article 133 defines appointment criteria for Chairman Emeritus.
• The Chairman Emeritus holds office until resignation or a board resolution.
• Chairman Emeritus may attend Board or Committee meetings but has no voting rights.
• Not deemed a Director for statutory purposes; no impact on director count.
• Board may decide to pay for services rendered by the Chairman Emeritus.

AGM details

• Date/time/mode: 11 September 2026, 11:30 A.M., via VC/OAVM.
• Record date: 4 September 2026; shareholders on record: 7,722.
• Remote e-voting: 8–10 September 2026; e-voting during AGM.

Key resolutions & outcomes

• Item 1 (Ord): Adopt Audited Financial Statements; Passed.
• Item 2 (Ord): Re-appoint Sruti Sukul (DIN 10794840); Passed.
• Item 3 (Special): Re-appoint Ashish Agrawal as MD; Passed.
• Item 4 (Special): Amend Articles of Association; Passed.
• Item 5 (Special): Appoint Awanti Kumar Kankaria as Chairman Emeritus; Not Passed.
• Item 6 (Special): Remuneration to Cost Auditors for FY 2026-27; Passed.

Dividend

• Dividend proposed: Not proposed at this AGM.

Director changes

• Sruti Sukul retires by rotation; re-appointment approved.

Auditors / governance

• No auditor appointment changes announced.

AGM Details

• Date, time, mode: 11 Sep 2026, 11:30 AM, VC/OAVM.
• Meeting concluded at 12:32 PM; e-voting continued 15 minutes.
• Notice date: 12 August 2026.
• Quorum declared via videoconferencing.

Key Resolutions

• Adoption of audited financial statements for FY2025-26 — voting outcome not disclosed.
• Re-appointment of Sruti Sukul as Director by rotation — voting outcome not disclosed.
• Re-appointment of Ashish Chandrakant Agrawal as Managing Director — voting outcome not disclosed.
• Amendment of Articles of Association — voting outcome not disclosed.
• Appointment of Awanti Kumar Kankaria as Chairman Emeritus — voting outcome not disclosed.
• Remuneration of M/s SPK Associates as Cost Accountants for 2026-27 — voting outcome not disclosed.

MD Re-appointment

• Re-appointment of Mr. Ashish Chandrakant Agrawal as Managing Director for a 3-year term.
• Term from 13 June 2026 to 12 June 2029, subject to shareholder approval.
• Reason: re-appointment of MD.
• Brief profile: 30+ years' experience; B.Tech (Chemical Eng); MBA; roles include Processing Head, Quality Head, and Project/Business Head.
• Not related to any directors.
• Not debarred from holding the office by SEBI or any other authority.
• Shareholder approval required.
• No impact on board or committees disclosed.

Directorship change

• Change: Re-appointment of Ms. Sruti Sukul as Non-Executive Non-Independent Director.
• Approval: AGM held 11 September 2026 approved the re-appointment.
• Reason: Re-appointment following retirement by rotation.
• Profile: Company Secretary with 12+ years in Company Law and SEBI.
• DIN and basic details: DIN 10794840; age 38; Indian.
• Board tenure: First appointed on 03 October 2024.
• Disclosure: Relationships with other directors: None disclosed.

AGM notice and e-voting details

• 47th AGM on Sep 11, 2026 at 11:30 a.m. IST via VC/OAVM.
• Electronic AGM notice and FY 2025-26 AR sent to registered email IDs.
• AR and Notice also available on Ludlow's website, NSDL, and BSE.
• Cut-off date for e-voting: Sep 4, 2026.
• e-voting window: Sep 8–10, 2026.
• Unregistered emails or physical shareholders to update contact details.
• Detailed email-registration steps provided in the AGM Notice.

Overview & Highlights

• FY2025-26 total income ₹532.78 crore.
• PAT ₹16.16 crore; OCI ₹18.41 crore.
• Dividend for FY2025-26: not declared.
• EPS ₹15.00; paid-up equity ₹1,079.77 lakh.
• Geographic revenue: India ₹47,745.67 lakh; Overseas ₹5,439.34 lakh.
• Production: 38,029 MT; prior year 25,573 MT.
• CWIP closed ₹753.35 lakh; additions ₹3,285.92 lakh.
• Proposed Section 8 subsidiary for social objectives under formation.

Financial Performance

• Profit before tax ₹22.09 crore; tax ₹5.93 crore.
• Net profit ₹16.16 crore; total comprehensive income ₹18.41 crore.
• Cash from operations: -₹1.775 crore; investing cash outflow ₹36.10 crore.
• Total borrowings ₹21,351.91 lakh; equity ₹18,617.60 lakh.
• Gearing 115%; current ratio 1.15; ROA/ROE implied by ratios.
• Export revenue ₹5327.18 lakh; overall revenue ₹532.78 crore.

Operations & Capacity

• Single segment: manufacture and sale of jute goods.
• Production improvements supported by modernization and capacity expansion initiatives.
• Raw jute price volatility discussed; JPM Act provides stable demand for packaging.
• Export markets under consideration; emphasis on eco-friendly jute products.
• CWIP & capital expenditure ongoing; focus on efficiency and product mix.

Debt, Liquidity & Capital Structure

• Total borrowings ₹21,351.91 lakh; net debt to equity 115%.
• Current ratio 1.15; debt-equity mix reflects higher working capital needs.
• Cash & cash equivalents ₹11.90 lakh; cash flow sensitivity to interest costs exists.
• CWIP balance ₹753.35 lakh indicates ongoing asset investments.

Governance, Audit & Controls

• Board: five directors; two independent; MD is executive.
• Statutory auditors: M/s J K V S & Co; no qualifications.
• Secretarial auditor: no qualifications; compliance reported.
• Audit Committee oversees governance; no material adverse findings.
• Payroll audit trail not fully enabled; improvement plan underway.

Related Party Transactions & CSR

• Significant related party transactions with holding company and group entities.
• Arm's length transactions; disclosures in notes. Inter‑company borrowings reported.
• CSR not applicable; CSR policy available on ludlowjute.com.

Shareholding & Corporate Actions

• Promoter holding 67.21% via Panchjanya Distributors Pvt Ltd.
• Dematerialisation 97.09%; equity share capital ₹1,079.77 lakh.
• AGM scheduled 11 September 2026; VC/OAVM facility. No dividend.

Risks, Outlook & Market Environment

• Outlook cautiously optimistic; improved raw jute availability expected in 2026-27.
• MSP for raw jute increased to ₹5925/quintal for 2026-27.
• Risks: price volatility, JPM Act dependence, climate, skilled labor shortages.
• Geopolitical tensions affect export demand; competition from synthetics persists.
• Industry shift toward sustainable, biodegradable jute products.