Are Ducon Tech latest results good or bad?

Jun 07 2025 04:02 AM IST
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Ducon Infratechnologies reported strong quarterly net sales and profit growth, indicating positive trends in profitability. However, rising interest costs pose challenges to financial stability, suggesting mixed results overall.
Ducon Infratechnologies has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The company achieved its highest quarterly net sales at Rs 119.34 crore, reflecting consistent growth over the last five quarters, with a quarter-on-quarter growth of 5.91%. Additionally, the operating profit reached Rs 8.91 crore, with an operating profit margin of 7.47%, indicating enhanced operational efficiency. The profit after tax (PAT) also saw an increase to Rs 3.61 crore, and earnings per share (EPS) rose to Rs 0.11, suggesting a positive trend in profitability for shareholders.

However, Ducon faced challenges due to rising interest costs, which surged by 36% quarter on quarter to Rs 3.40 crore, marking the highest level in the last five quarters. This increase has led to a decline in the operating profit to interest ratio, now at its lowest level of 2.62 times, indicating potential difficulties in managing interest payments.

It is also noted that the company saw an adjustment in its evaluation over the past three months. Overall, while Ducon Infratechnologies has demonstrated growth in sales and profitability, it is contending with rising interest expenses that may impact its financial stability moving forward.
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