Sical Logistics, a subsidiary of late VG Siddhartha's Coffee Day Enterprises (CDEL), has announced plans to deleverage its assets and that of its subsidiaries. In a meeting on Friday, Sical's board directed its management to revert with recommendations in the matter. Siddhartha-led Coffee Day Enterprises had acquired Sical Logistics in 2011.
The decision came days after CDEL announced to sell the assets of Coffee Day Group, which operates the Cafe Coffee Day chain of coffee houses. Proceeds from the deleveraging exercise will be utilised to pare the company's debt.
"Further to the observations made by the ultimate holding company, i.e., Coffee Day Enterprises Limited to deleverage the Coffee Day Group, the Board considers it appropriate to come up with a roadmap to deleverage Sical and its subsidiaries. Accordingly, the Board has asked Sical management to explore all the strategic alternatives to possibly deleverage Sical and its subsidiaries. In this direction, the management will come back to the Board with its recommendations," Sical Logistics said in a filing to the Bombay Stock Exchange.
The Sical board also approved the unaudited financial results for the quarter June 30, 2019. The logistics firm posted a standalone net profit of Rs 6.49 crore during the quarter on review, up 26.51 per cent in comparison to net profit of Rs 5.13 crore in the year-ago period.
Revenue from operations increased 15.96 per cent to Rs 312.9 crore during the June quarter this fiscal, as opposed to Rs 269.82 crore during the corresponding quarter last year.