BSEDeepak Spinners Ltd-$HighNeutral
Announced Mon, 25 Aug · 16:05 IST

Annual Report for the financial year ended on 31.03.2025

Pat NegativeEbitda Margin CompressionResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

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AI summary

Deepak Spinners Limited submitted its 43rd Annual Report for FY 2024-25, reporting a sharp deterioration in financials. Profit before Depreciation & Tax fell steeply to Rs. 358.14 lakhs from Rs. 2,095.74 lakhs in FY24, and Total Comprehensive Income swung to a loss of Rs. 996.64 lakhs versus a profit of Rs. 169.43 lakhs last year. The Board skipped dividend. Margins compressed significantly — Operating Profit Margin fell to -1.95% from 1.27% and Net Profit Margin dropped to -2.67% from 0.44%, driven by higher power tariffs in Himachal Pradesh and persistent domestic yarn oversupply. The company completed a 4 MW solar plant at its Guna unit to aid energy costs. ICRA reaffirmed credit rating of A- but revised outlook to Negative. The auditor's report is clean with no qualifications, though several independent directors resigned during the year, causing delays in committee reconstitution and BSE fines.

Likely market impact

Shareholders should note the company has slipped into a net loss with negative returns on net worth (-4.53%) for the first time in the reported period. While debt levels remain modest (D/E 0.16), the Negative credit outlook and margin compression signal continued near-term pressure on profitability and valuation.