AksharChem Reports Strong Q4 Results Amid Rising Interest Expenses and Debt Levels

AksharChem (India), a microcap player in the Dyes & Pigments industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable performance in several key areas. Net sales reached Rs 90.69 crore, marking the highest figure in the last five quarters, suggesting a positive trend in sales. Similarly, the operating profit (PBDIT) also peaked at Rs 6.33 crore, reflecting a strong operational performance during this period. Profit after tax (PAT) was recorded at Rs 1.19 crore, again the highest in the last five quarters, indicating a favorable outcome for the company's profitability. Additionally, earnings per share (EPS) rose to Rs 1.48, showcasing an increase in profitability for shareholders.
However, there are aspects that warrant attention. Interest expenses have grown to Rs 3.91 crore, representing a significant increase over the preceding nine months, which may indicate rising borrowing costs. Furthermore, the debt-equity ratio has reached 0.26 times, the highest in the last five half-yearly periods, suggesting that the company is increasing its borrowings to support operations, potentially impacting its liquidity.

In light of these developments, AksharChem (I) has experienced an adjustment in its evaluation.

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