Varroc Engineering Limited — Others, 29-05-2025: Change in Management

Varroc Engineering Limited has announced a board meeting outcome approving the financial results for the quarter and half-year, reporting standalone revenue from operations of Rs. 191.33 Cr for the quarter and Rs. 736.86 Cr for the year. The company posted a standalone profit of Rs. 10.57 Cr for the quarter and Rs. 38.07 Cr for the year. Exceptional items include merger-related expenses and a provision for expected credit loss on a customer insolvency. The board endorsed a final dividend of Re. 1 per equity share. Key leadership changes include the appointment of Mr. Akshaykumar Chudasama as Independent Director and re-appointment of Mr. Tarang Jain as Chairman & Managing Director, alongside re-appointments of Mr. Arjun Jain and Mr. Dhruv Jain as Whole Time Directors. Approval for reappointment of secretarial and cost auditors for upcoming terms was granted. The board also approved reclassification of authorized share capital and alteration of the object clause following the merger with Varroc Polymers Limited. The company is seeking shareholders' approval for these and for raising up to Rs. 500 Cr through issuance of non-convertible debentures. The consolidated results carry a qualified audit opinion due to unaudited financials from a joint venture, Varroc TYC Corporation BVI, which is now classified as asset held for sale following an arbitration order directing transfer of its 50% shareholding. Pending resolution, no adjustments for related impairment losses and profits have been made. The group reported consolidated revenue from operations of Rs. 209.92 Cr for the quarter and Rs. 815.42 Cr for the year, with a consolidated profit of Rs. 22.99 Cr for the year despite exceptional items including the JV impairment, arbitration costs provision of Rs. 43.99 Cr, merger expenses, and expected credit loss due to a customer’s insolvency. The company maintains adequate asset cover for its listed debt and has ongoing appellate proceedings against GST orders related to classification disputes.