Suryalakshmi Cotton Mills Ltd

Paritosh Agarwal — Director re-appointment

• Re-appointed as Director by retirement by rotation at AGM 30 Sep 2026.
• MD term unchanged; Paritosh is son of L.N. Agarwal, Chairman & MD.

Venkata Phani Kiran Kumar Immaneni — Independent Director

• Appointed Non-Executive Independent Director for five-year term 27 Jul 2026–26 Jul 2031.
• Not liable to retire by rotation.
• Profile: banking professional with 33 years of experience; ex-CEO in China/HK.
• Relationships: not related to other Directors or KMP.

AGM Details

• Remote e-voting window: 25 Sep 2026 to 29 Sep 2026; cut-off: 23 Sep 2026.
• Mode not stated; remote e-voting used; physical attendance implied.
• Meeting concluded at 11:40 IST.

Key Resolutions

• Ratification of remuneration of Cost Auditor.
• Appointment of Sri Venkata Phani Kumar Immaneni as Non-Executive Independent Director.
• Ratification and authorization for creation of mortgage, charge and security interest on assets.

Voting Status

• Ratification of remuneration: results pending; to be declared within two working days.
• Appointment of NED: results pending; to be declared within two working days.
• Mortgage on assets: results pending; to be declared within two working days.

Ratings overview

• Agency: ICRA Limited; ratings reaffirmed across instruments, with outlook revised to Stable from Negative
• Long-term fund-based cash credit: ₹169.50 cr; ICRA BBB (Stable); outlook Stable
• Long-term fund-based term loan: ₹57.99 cr; ICRA BBB (Stable); outlook Stable
• Short-term non-fund-based - Others: ₹55.70 cr; ICRA JA3+; reaffirmed
• Long-term/Short-term unallocated facilities: ₹80.00 cr; ICRA BBB (Stable)/ICRA JA3+; outlook Stable
• Total facilities: ₹363.19 cr
• Material change: Outlook revised to Stable from Negative for applicable long-term facilities

Suryalakshmi Cotton Mills Ltd – Closure of Trading Window

Financial highlights

• Revenue from operations: ₹79,471.80 Lakhs.
• EBITDA: ₹5,438.33 Lakhs.
• PBT: ₹482.45 Lakhs; PAT: ₹311.54 Lakhs.
• EPS: ₹1.66; Total Comprehensive Income: ₹284.66 Lakhs.
• Debt ₹25,783.01 Lakhs; Gearing 0.95x.
• Dividend not declared for the year.
• Capex incurred: ₹3,097.03 Lakhs.
• CSR spend ₹16.04 Lakhs; CSR obligation ₹14.39 Lakhs; carry-forward ₹1.65 Lakhs.
• ICRA rating reaffirmed BBB (Negative) / A3+.

Operations & capacity expansion

• Amravati spinning upgrades with next-gen auto-coners; spindle capacity increased.
• Ramtek denim division installed Autocoro 10; higher efficiency.
• Yarn division capacity: 87,000 spindles.
• Denim capacity: 40 million metres per year.
• 100% recycled polyester usage in polyester denim.
• Coal consumption reduced; freshwater use decreased via Indigood.
• Higg carbon footprint framework; facilities rank well.
• Backward integration strengthens stability and cost competitiveness.
• Integrated operations support faster go-to-market cycles.

Geography & markets

• India revenue: ₹64,088.09 Lakhs; domestic emphasis.
• Bangladesh: ₹11,583.46 Lakhs; other geographies include Colombia ₹1,009.14; Guatemala ₹1,932.14.
• Venezuela: ₹506.66 Lakhs; Other countries ₹352.31 Lakhs.
• Major customers: Walmart, Levi's, Wrangler, Lee, Kontoor.
• Export environment challenged by tariff uncertainties and West Asia tensions.
• South American market diversification; presence in 29 countries.
• Exports affected by US tariff-related cautious buying behavior.
• Growing demand for premium denim and differentiated yarns.

Capital structure & liquidity

• Total assets ₹72,526.43 Lakhs; total equity ₹27,253.41 Lakhs.
• Debt: long-term ₹7,880.51; current borrowings ₹17,902.50; acceptances ₹4,474.92.
• Current ratio 1.31x; debt/equity 0.95x.
• Cash & equivalents ₹15.43 Lakhs; bank balances ₹856.98 Lakhs.
• ICRA BBB (Negative) / A3+ reaffirmed.
• Share capital: ₹2,057.83 Lakhs; 99.8% dematerialised.
• Capex funded via mix of debt and equity; FY26 capex ₹3,097.03 Lakhs.

Dividends & capital allocation

• Dividend not declared for FY2025-26.
• Capex of ₹3,097.03 Lakhs undertaken for modernization.
• CSR spend ₹16.04 Lakhs; CSR obligation ₹14.39 Lakhs.
• No fund-raising via preferential allotment or QIP.
• Share capital remains unchanged at 1,88,05,290 equity shares.

Governance & board changes

• Paritosh Agarwal reappointed MD from 21 June 2025.
• Dhruv Vijai Singh's second term ended 27 July 2026.
• Venkata Phani Kiran Kumar Immaneni appointed Independent Director from 27 July 2026.
• Independent Directors’ familiarisation and board performance evaluation conducted.
• Audit Committee: Aruna Prasad to chair from 27 July 2026; Immaneni to join.

CSR & ESG

• CSR policy focuses on health, education, environment; CSR projects disclosed.
• CSR committee chaired by Dhruv Vijai Singh; members L. N. Agarwal, Paritosh Agarwal.
• Sustainability: Cleankore momentum; ~10 million yards dyed; regenerative materials used.
• 100% recycled polyester usage in denim; water and energy efficiency programs.
• Certifications: ISO 14001, ISO 9001, GOTS, GRS, OCS, RCS, OEKO-TEX.

Outlook & risks

• Textile demand expected to grow; premium yarns and denim opportunities persist.
• UK/EU FTAs and US trade momentum support exports.
• China+1 sourcing reinforces India as preferred supplier.
• Risks: geopolitics, tariffs, energy costs, raw material volatility.
• Strategic focus: integrated manufacturing, product development, sustainable practices.

Financial results

• Unaudited Q1 2026-27 results for quarter ended 30 June 2026 approved.
• Audit Committee reviewed; Limited Review Report issued by auditors.
• Revenue from operations Rs 18,223.08 lacs; Total income Rs 18,270.62 lacs.
• Profit after tax Rs 235.29 lacs; Earnings per share Rs 1.25.
• No subsidiary/associate/joint venture as at 30 June 2026.
• Single business segment: Textiles.

AGM & book closure

• 63rd AGM to be held 30 September 2026 via VC/OAVM.
• Book closure from 23 to 30 September 2026 (inclusive).

Appointments & cessations

• Sri E. V. S. V. Sarma ceases as CS, CO and KMP on 8 Aug 2026.
• Ms. Murmur Baid appointed CS, CO and KMP effective 8 Aug 2026.

Auditor's review

• Independent auditor's review report issued; no material misstatement.

Meeting Details

• Board meeting scheduled for August 08, 2026.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended June 30, 2026.
• Any other business with the permission of the Chair.

Other Notes

• Trading window closed from July 01, 2026 until 48 hours after results declaration.

Board changes

• Sri Venkata Phani Kiran Kumar Immaneni appointed as Additional Director (Independent) for five-year term, effective 27 July 2026.
• Dhruv Vijai Singh ceased as Independent Director on completion of his final term, effective 27 July 2026.