Outcome of Board Meeting dt 11-08-2025
RAJPALAYAM · price
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The Board of Rajapalayam Mills met on 11 August 2025 and appointed Justice Smt. Chitra Venkataraman (Retd.), a former Madras High Court judge, as an Additional Independent Director. The Board also approved a corporate guarantee of Rs. 50 crore for Sandhya Spinning Mill Limited, sought shareholder approval to raise the investment/loan/guarantee limit by an additional Rs. 150 crore, and approved material related party transactions of up to Rs. 450 crore each with four Ramco-group entities over FY26–FY28. For Q1 FY26 (standalone), total income fell to Rs. 19,214 lakhs from Rs. 22,629 lakhs in Q4 FY25, and the company reported a net loss of Rs. 1,225 lakhs (vs. Rs. 1,366 lakhs loss in Q4 FY25). On a consolidated basis, the company swung to a net profit of Rs. 812 lakhs, largely helped by Rs. 2,037 lakhs share of profit from associates (Ramco Cements, Ramco Industries, Ramco Systems). Statutory auditors gave an unmodified limited review opinion.
Core textile business continues to post losses, though the consolidated picture is cushioned by strong associate-company earnings. Large related-party transactions and guarantees to group companies highlight significant inter-group financial dealings that shareholders will need to approve, while the addition of a former High Court judge as an Independent Director may strengthen board governance.