Directors quitting delays Balaji Amines' Q1 results
Balaji Amines in declaring its June quarter results following the en masse resignation of five independent directors in May has raised concerns among market participants about the company's prospects. The company, once a darling of Dalal Street, informed stock exchanges on Monday about the delay. «In accordance with the Sebi master circular, we would like to submit that there has been a delay in the preparation of the consolidated financial results on account of the unavailability of the management,» said Balaji Amines in an exchange filing.
Under Sebi listing regulations, listed firms must submit their unaudited financial results and the limited review report to stock exchanges within 45 days from the end of the quarter. The company should have published its results for the quarter ended June 30 by August 14. An email query sent to the company did not elicit any response.
«For a company the size of Balaji Amines, the delays in the release of financial results highlight potential red flags,» said Nimish Maheshwari, an independent analyst and director of Beat The Street Ventures. «The company whose subsidiary Balaji Speciality Chemicals is planning for IPO is yet to intimate the board meeting date for considering the results.» Shares of the Hyderabad-based company returned 2,300% between March 2020 and September 2021. It hit an all-time high of ₹5,220 on September 15, 2021.
Since then, the stock has declined 58% to close at ₹2,182 on Monday. The company's market capitalisation declined from ₹16,162 crore on September 15, 2021, to ₹7,071 crore on Monday. Balaji Amines said the unaudited standalone and consolidated financial results for the June quarter will be approved after August 14.
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