Precot Limited — Important, 27-02-2025: Closure of operations

The Board of Directors has decided to close the spinning unit in Hindupur, Andhra Pradesh, due to unsustainable losses over several years and a lack of improvement in the unit’s outlook. The unit contributed ₹131 Crores to the overall revenue of ₹933 Crores in the last financial year. Although this closure will lead to a temporary reduction in operational revenues, the company plans to mitigate this by relocating productive assets to other units, aiming to strengthen the Spinning Division and enhance profitability in the long run. This strategic shift signals a proactive approach to addressing inefficiencies within the company, presenting potential for improved margins in the future. Investors should watch closely for how these changes affect overall performance in the next financial period.