SPEL Semiconductor Ltd — Board Meeting, 24-05-2025: Board Meeting

SPEL Semiconductor Limited has announced a board meeting on which it approved an increase in authorized share capital from Rs. 60 Cr to Rs. 66.95 Cr, subject to shareholder approval, and allotment of 6 lakh redeemable preference shares to Mr. A C Muthiah, along with conversion of his loans of Rs. 6.95 Cr into such preference shares pending shareholder consent. Related party transactions for the half-year ended March 31, 2025, and proposed related party transactions for 2025-26 were recorded. Mr. T. Parthasarathy was appointed as CFO.

The Board approved the financial results for the quarter and half-year ended March 31, 2025, reporting a net loss of Rs. 2104.66 lakh (approx. Rs. 21.05 Cr) for the year compared to a loss of Rs. 1678.74 lakh (Rs. 16.79 Cr) previous year, with total income of Rs. 951.90 lakh (Rs. 9.52 Cr). Operating losses and negative cash flows persisted, raising material uncertainty about the company’s ability to continue as a going concern. The company is addressing this by planning to sell 8.14 acres of surplus lease land and pursuing incentives under the India Semiconductor Mission 2.0 and low-cost debt funding, alongside seeking business tie-ups for growth.

Total equity stood at Rs. 12.91 Cr against liabilities of Rs. 115.18 Cr, with borrowings increasing slightly. Exceptional expenses mainly from inventory write-offs (Rs. 12.57 Cr) impacted profitability. Cash flow from operations remained negative at Rs. 1.67 Cr. Despite challenges, management is focused on restructuring operations and improving liquidity, which is critical for investors to monitor.