Precision Camshafts Limited has informed the Exchange about initiation of insolvency proceedings of overseas subsidiary.
PRECAM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Precision Camshafts Limited (PCL) has approved the initiation of insolvency proceedings for its step-down wholly owned subsidiary MFT Motoren und Fahrzeugtechnik GmbH in Germany, held through PCL (International) Holding B.V. in the Netherlands. The decision, taken via a circular resolution on August 29, 2025, is due to persistent financial difficulties caused by the European economic slowdown, significantly reduced customer orders, and resulting severe cash flow and liquidity issues. MFT contributed INR 111.45 Crores (about 12.92%) to PCL's consolidated turnover in FY 2024-25 and had a negative net worth contribution. An independent insolvency administrator will be appointed by the German court to handle the process.
This is a negative development as the company is writing off a loss-making overseas unit that contributed over 12% of consolidated revenue, signalling deeper troubles in its European operations. Short-term stock sentiment may be weak, though the impact on the parent company's balance sheet was already reflected through MFT's negative net worth, and insolvency may help limit further losses.