Arihant Capital Reports Declining Sales and Profitability Amid Improved Liquidity for Q4 2024

Arihant Capital Markets has recently reported its financial results for the quarter ending December 2024, revealing notable trends in its performance. The company has experienced a revision in its evaluation, with its score reflecting a decline from the previous assessment.
On a positive note, Arihant Capital's cash and cash equivalents have reached their highest level in the last six half-yearly periods, totaling Rs 439.00 crore, indicating an improvement in short-term liquidity. However, several key metrics indicate challenges for the company.

Net sales for the quarter stood at Rs 51.79 crore, marking a significant decline compared to the average of the previous four quarters. Similarly, profit before tax less other income (PBT) and profit after tax (PAT) have also shown substantial reductions, with both metrics falling sharply from their respective averages. Operating profit and operating profit margin have reached their lowest points in the last five quarters, suggesting a decline in operational efficiency. Additionally, the earnings per share (EPS) have decreased, reflecting lower profitability for shareholders.

The debt-equity ratio has risen to its highest level in the last six half-yearly periods, indicating an increase in borrowing to support operations, which may raise concerns about liquidity.

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