PALAKKAD: Malabar Cements Ltd (MCL), a fully owned subsidiary of the Government of Kerala, has reported a significant financial downturn in FY23, marking a departure from its previous years of profitability.
For the fiscal year ending March 31, 2023, the company recorded a net loss of Rs23.30 crore, a stark contrast to the Rs9.69 crore net profit achieved in FY22. This decline is attributed to a volatile operating margin and exposure to intense competition in a cyclical industry.
The company’s performance for FY24 and FY25 remains unavailable in the public domain, as the latest audited financial statements are for FY23. The absence of these reports raises concerns about the transparency and financial health of the company.
CRISIL Ratings has reaffirmed its ratings on MCL’s bank loan facilities at ‘CRISIL BB/Stable/CRISIL A4+’, reflecting the company’s moderate financial risk profile. However, the recent financial performance indicates potential challenges ahead.
The Government of Kerala’s ownership and support remain crucial for the operations of Malabar Cements. The company’s future performance will depend on its ability to navigate the competitive landscape and improve its financial metrics.
Stakeholders and industry observers will be closely monitoring the release of FY24 and FY25 financial results to assess the company’s recovery trajectory.
