Shiva Mills Limited — Important, 06-02-2025: Financial Result Updates

Shiva Mills Limited reported a total income of ₹36.30 crore for the quarter ended 31st December 2024, reflecting a growth of approximately 2.9% year-over-year, driven by improved demand for textiles amid market recovery. However, revenue for the nine months increased to ₹128.86 crore from ₹111.07 crore last year.

The company registered a net loss of ₹15.97 crore for the quarter, compared to a loss of ₹7.19 crore in the same period last year. This translates to an Earnings Per Share (EPS) of ₹(1.70), indicating continued challenges in profitability likely attributed to elevated operational costs, including material consumption and employee benefits, which rose by 8% and 13.9% respectively. Total expenses surged to ₹37.81 crore, reflecting an increase in costs related to raw materials and operational outlays.

On the balance sheet, the company holds ₹86.42 crore in equity capital with reserves of ₹87.54 crore, suggesting a stable equity position despite recent losses. The cash flow has remained adequate, supporting ongoing operations without imminent liquidity concerns.

Shiva Mills appears to be focusing on cost control amidst challenging market conditions. While the revenue growth shows promise, the ongoing losses and rising costs raise concerns about the company’s efficiency. Given the mixed financial performance and cost pressures, a cautious approach is warranted, leaning towards a hold until more consistent profitability trends emerge.