Aries Agro Reports Strong Financial Growth Amid Rising Interest Costs in December 2024

Aries Agro, a microcap player in the fertilizers industry, has recently reported its financial results for the quarter ending December 2024. The company has experienced notable developments in its financial metrics, leading to an adjustment in its evaluation score, which has shifted to 19 from 33 over the past three months.
The financial results indicate a strong performance in several areas. Profit Before Tax (PBT) reached Rs 14.67 crore, reflecting a growth of 55.1% compared to the average PBT of the previous four quarters. Similarly, Profit After Tax (PAT) stood at Rs 11.58 crore, marking a significant increase of 63.5% over the average PAT from the prior four quarters. Additionally, the inventory turnover ratio has reached its highest level at 4.21 times, demonstrating the company's efficiency in selling its inventory.

On the sales front, net sales for the nine-month period amounted to Rs 499.42 crore, showing a year-on-year growth of 21%. Furthermore, cash and cash equivalents have also reached a peak of Rs 16.30 crore, indicating an improvement in short-term liquidity. The debt-equity ratio has been recorded at its lowest at 0.13 times, suggesting a reduction in borrowing relative to equity capital.

However, the company has faced challenges, particularly with rising interest costs, which have increased by 51.86% compared to the previous half-year period, indicating a potential rise in borrowings.

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