Are Kiri Industries latest results good or bad?

Kiri Industries has reported its financial results for the quarter ending June 2025, revealing a complex financial landscape. The company experienced a decline in Profit Before Tax (PBT), which fell to Rs -87.34 crore, representing a significant drop compared to the average PBT of the previous four quarters. Profit After Tax (PAT) also saw a sharp decline, now at Rs 10.14 crore, down from an average of Rs 66.19 crore in prior quarters. This indicates substantial challenges in profitability.
On a more positive note, Kiri Industries achieved a Debtors Turnover Ratio of 6.81 times, the highest in the last five half-yearly periods, suggesting improved efficiency in managing receivables. However, the company is facing increased interest expenses, which have reached their highest level in five quarters at Rs 59.54 crore, indicating rising borrowing costs. Additionally, cash and cash equivalents have decreased to Rs 14.19 crore, marking the lowest level in six half-yearly periods, which raises concerns about short-term liquidity.

In terms of net sales, there was a slight decline of 1.41% compared to the previous quarter, contrasting with a growth of 14.77% in the quarter ending March 2025. The operating profit margin also reflected a negative trend, with a margin of -8.02%, indicating ongoing operational challenges.

Overall, Kiri Industries has seen an adjustment in its evaluation, reflecting the mixed operational trends and financial performance reported for the quarter.