Prabhat Dairy has reported that its net profit was down 10 per cent at Rs 9 crore against Rs 10 crore logged in the same period last year, due to lower production.
Revenue from operations was down at Rs 92 crore (Rs 202 crore), while expenses also dropped to Rs 91 crore (Rs 203 crore).
However, on a standalone basis, the company recorded a net profit of Rs 6 crore (Rs 4 crore) on a revenue of Rs 92 crore (Rs 192 crore).
In December, the market regulator SEBI gave an extension of six months to the company’s proposal to delist from stock exchanges, provided it completed a forensic audit of accounts for FY’19 and FY’20.
The company received shareholders' nod for delisting on October 14, 2019. Last October, the company moved SEBI seeking a six-month extension for filing the final application for delisting, citing the nationwide lockdown that was imposed in March due to Covid pandemic.
Under SEBI norms, a company is required to make the final application to stock exchanges for delisting within one year of passing the special resolution.
Following this, SEBI granted an extension of six months to the special resolution passed by the shareholders for the delisting of the company till April 13, 2021, subject to certain conditions.
In 2019, the company entered into a definitive sale agreement with Tirumala Milk Products to sell the entire dairy business of Prabhat Dairy and sale of its subsidiary Sunfresh Agro Industries by way of a slump sale for Rs 1,700 crore.
It received Rs 1,317 crore last fiscal as per the sale agreements. Due to Covid and subsequent nationwide lockdown, the company said it could not complete the working capital adjustments and complete the business transaction with the buyer. It expects to complete the same soon, it said.