Are Kanco Tea latest results good or bad?

Kanco Tea & Industries has reported its financial results for the quarter ending March 2025, which reflect a challenging operational environment. The Profit Before Tax less Other Income (PBT) is recorded at Rs -13.21 crore, marking a year-on-year decline of 21.08%, and is the lowest PBT noted in the past five quarters. This indicates a concerning trend in the company's profitability.
The company's interest expenses have significantly increased, with a nine-month figure of Rs 2.58 crore, which represents a 75.51% rise compared to the previous nine-month period. This surge in interest costs suggests a growing dependence on borrowings, complicating Kanco Tea's financial landscape.

Operating Profit (PBDIT) has reached Rs -12.32 crore, with the Operating Profit Margin dropping to 0.00%, signaling a decline in operational efficiency. Additionally, the Profit After Tax (PAT) stands at Rs -9.78 crore, reflecting a year-on-year decrease of 5.3%. The Earnings per Share (EPS) has also fallen to Rs -19.10, indicating reduced profitability for shareholders.

Despite a rise in non-operating income to Rs 3.92 crore, this increase may not be sustainable in the long term. The company experienced a net sales growth of 32.20% compared to the previous year, while the consolidated net profit saw a decline of 5.27%.

In light of these results, Kanco Tea has experienced an adjustment in its evaluation, reflecting the ongoing challenges in its financial performance.