Bannari Amman Spinning Mills Limited has submitted to the Exchange, the financial results for the period ended March 31, 2025.
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On the reaction day the stock moved 1.1 pts more than Nifty Microcap 250 and 1.8 pts more than its Other Textile Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Bannari Amman Spinning Mills reported a turnaround at the bottom line for FY25, with standalone net profit of Rs. 36.86 crore versus a loss of Rs. 26.23 crore in FY24. However, this swing was largely driven by a one-time gain of Rs. 53.48 crore from selling its Young Brand Apparel subsidiary (classified under discontinued operations). The core spinning/textile business (continuing operations) still posted a pre-tax loss of Rs. 2.71 crore, though much improved from Rs. 28.27 crore loss last year. Revenue from operations declined about 3.9% to Rs. 887.36 crore from Rs. 923.52 crore. The board has not recommended any dividend. The auditor (P.N. Raghavendra Rao & Co.) issued an unmodified opinion.
For shareholders, headline profit numbers look encouraging but are mostly propped up by a one-time subsidiary sale gain; underlying textile business remains marginally loss-making. With no dividend declared, an upcoming Rs. 40.71 crore rights issue, and pending conversion of convertible warrants, shareholders should expect equity dilution. Resolution of the pending garment unit sale to S P Apparels remains a key catalyst.