Smruthi Organics Ltd — Others, 28-05-2025: AGM/EGM

Smruthi Organics has announced a board meeting to consider the financial results for the quarter and half-year. The company proposes a final dividend of Rs 1.5 per share (15%) on 1.14 crore equity shares for FY 2024-25. The Board recommends re-appointments of Managing Director Mr. E. Purushotham and Joint Managing Director & CFO Mr. E. Swapnil for three-year terms with revised remunerations of Rs 15 lakh and Rs 10 lakh per month, respectively, each with up to 25% annual increments. The Board also proposes increasing remuneration for Mrs. Eaga Rimika, Executive Business Development, to Rs 30 lakh annually plus benefits. Secretarial auditor Mr. H. R. Thakur is appointed for five years, and cost auditor remuneration is ratified.

Financial highlights include net sales and other income of Rs 126.1 Cr (down 1.3%), and net profit at Rs 3.56 Cr, near previous year levels. Export income declined 31% to Rs 26.16 Cr but the company focuses on operational efficiencies, backward integration, and regulatory filings to improve margins and market access. Capital expenditure stood at Rs 11.5 Cr, mainly for plant modernization and automation. The balance sheet shows total assets of Rs 1117 Cr and borrowing of Rs 17.0 Cr long-term and Rs 8.7 Cr short-term.

The company reported stable profitability amidst pricing pressures and increased finance costs. It maintains a strong equity base with a gearing ratio of 22.7%. Key risks include foreign currency exposure and raw material price volatility. Dividend payment is scheduled on or before mid-July 2025. Audit reports are unqualified and internal controls are effective. Legal proceedings mainly relate to labor disputes and receivable recoveries totaling about Rs 3.8 Cr, which management expects to resolve.

Governance disclosures confirm a balanced Board with six directors including promoters and independents, compliance with corporate governance norms, and a whistleblower policy. Related party transactions are routine and approved by Board committees without material conflict. The company does not have subsidiaries and is listed on BSE and MSEI.

Overall, Smruthi Organics remains focused on sustaining profitability through export growth, cost control, and regulatory compliance while returning value to shareholders via dividends and stable leadership.