Desh Rakshak Aushdhalaya Ltd postponed its board decision on fundraising via convertible warrants while approving higher remuneration for three key directors, exceeding 11% of net profits, pending shareholder nod at the 44th AGM. This follows FY25 revenue up 4.5% to Rs 6.27 Cr and net profit rising 17.5% to Rs 0.47 Cr.
Board Decisions Unpacked
Ayurvedic firm Desh Rakshak Aushdhalaya Ltd deferred fundraising through warrants convertible into equity shares via preferential issue during its December 6 board meeting. The board greenlit revised pay for Managing Director Tosh Kumar Jain, Whole-time Directors Arihant Kumar Jain and Monika Jain, subject to AGM approval.
This remuneration hike surpasses 11% of net profits, reflecting governance norms for shareholder ratification. The company, producing 450+ herbal products, also approved audited FY25 financials and auditor appointments.
Financial Snapshot
Recent results show steady growth: revenue at Rs 6.27 Cr (+4.5% YoY), net profit Rs 0.47 Cr (+17.5% YoY), EPS Rs 1.07 (+11.46% YoY). Operating profit dipped slightly to Rs 1.28 Cr (-1.54% YoY).
Key Takeaways
-
Warrant Plan Paused: Fundraising decision deferred for market review.
-
Pay Hike Approved: For three directors, over 11% net profit cap, AGM pending.
-
Profit Momentum: 17.5% net profit jump supports leadership incentives.
-
Governance Focus: Shareholder vote key for remuneration revisions.
The delay signals prudent capital strategy amid modest gains.
Sources: ScanX Trade, StockInsights.ai, Business Standard.