Aarti Industries' Q4 Results Show Mixed Performance, Debt to Equity Ratio Deteriorates.

This could impact future profitability.Debt to Equity Ratio - Annual: At 0.72 has deteriorated from 0.66 in the previous year. Higher debt levels could lead to financial instability in the long run.

Aarti Industries, a largecap company in the chemicals industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Aarti Industries has shown a flat performance in the quarter, with a score of 1 compared to -8 in the previous quarter. However, there are some positive trends seen in the company's financials.

The net sales for the quarter were at their highest in the last five quarters, at Rs 1,773.00 crore. The near-term sales trend is also positive. Similarly, the operating profit (PBDIT) for the quarter was at its highest in the last five quarters, at Rs 283.00 crore. The near-term trend for operating profit is also positive.

The profit before tax less other income (PBT) for the quarter was at Rs 126.00 crore, showing a growth of 27.0% over the average PBT of the previous four quarters. The near-term trend for PBT is positive. The profit after tax (PAT) for the quarter was at Rs 132.00 crore, showing a growth of 21.7% over the average PAT of the previous four quarters. The near-term trend for PAT is also positive.

However, there are some areas of concern for Aarti Industries. The interest cost for the nine-month period has increased by 42.54%, which could indicate increased borrowings and impact future profitability. Additionally, the debt to equity ratio for the year has deteriorated from the previous year, which could lead to financial instability in the long run.

Overall, Aarti Industries has shown a mixed performance in the quarter ending March 2024. While there are some positive trends in the financials, there are also some areas of concern that investors should keep in mind.