Rupa & Co slumps after CEO, CFO resign

Rupa & Co fell 15.91% to Rs 433.55 after the innerwear maker accepted the resignation of Dinesh Kumar Lodha as the chief executive officer and Ramesh Agarwal as the chief financial officer, with effect from 31 May 2022.

Rupa & Company said that Dinesh Kumar Lodha has resigned for personal reasons, and he is and will be a part of the selection process for the new CEO to ensure a smooth transition.

Ramesh Agarwal is part of the promoter family and his resignation from the post of CFO is to free up his bandwidth from regular day to day activities and leverage his rich experience in overall growth and transformation of the company. He will continue to guide the company as whole time director.

Agarwal will be replaced by Sumit Khowala, who has been appointed as the new CFO of the company (key managerial personnel), from 1 June 2022.

The company's board also appointed Sunil Rewachand Chandiramani as the additional director (non-executive independent) of the company for 5 years. Niraj Kabra has been reappointed as executive director for 5 year.

Meanwhile, based on the recommendation of the nomination and remuneration committee, Vikash Agarwal has been appointed as additional director (whole-time category) of the company for a period of five years, from 23 May 2022, subject to the approval of the members of the company in the ensuing annual general meeting.

The company also announced its Q4 results on Monday, 23 May 2022. On a consolidated basis, Rupa & Company's net profit declined 25.2% to Rs 49.30 crore on 0.3% increase in total revenue to Rs 455.50 crore in Q4 March 2022 over Q4 March 2021.

Profit before Tax (PBT) fell 22.7% year-on-year to Rs 68.20 crore in Q4 March 2022. EBITDA fell 18.1% YoY to Rs 74.20 crore in Q4 March 2022. EBITDA margin stood at 16.3% in Q4 March 2022, lower than 20% in Q4 March 2021.

The board recommended a dividend of Rs 3 per equity share for the financial year ended 31 March 2022.

Rupa is among the largest knitwear brands in India that produces innerwear, casual wear, thermal wear and sleep wear for men, women and kids.

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