SPFL divests US subsidiary, recognizes ₹7,713.26 lakh loss

Sarla Performance Fibers Ltd (SPFL) has divested its wholly-owned US subsidiary, Sarlaflex Inc., due to its prolonged underperformance and negative net worth. The subsidiary, incorporated to expand global manufacturing, suspended operations in December 2017. This divestment resulted in a recognized loss of ₹7,713.26 lakhs, which is largely a non-cash accounting adjustment, with only ₹111.59 lakhs received as sale consideration. The transaction will not impact SPFL's operational liquidity or current cash flows. Management expects a direct improvement in Return on Capital Employed (ROCE) and a stronger balance sheet by removing non-productive legacy assets. SPFL plans to redeploy capital and focus on core, high-growth segments, maintaining an optimistic outlook for revenue growth and improved margins from increasing exports and new customers.