Avantel Reports Strong Q3 FY24-25 Growth Amid Declining Debtors Turnover Ratio

Jan 18 2025 05:45 PM IST
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Avantel has announced its financial results for Q3 FY24-25, reporting a Profit Before Tax of Rs 27.98 crore and net sales of Rs 70.68 crore, both reflecting growth compared to previous quarters. However, the Debtors Turnover Ratio has declined to 2.48 times, indicating potential concerns in debt collection efficiency.
Avantel, a small-cap player in the IT hardware industry, has reported its financial results for the third quarter of FY24-25, as declared on January 18, 2025. The company achieved a Profit Before Tax (PBT) of Rs 27.98 crore, which reflects a notable growth compared to the average PBT of Rs 19.70 crore over the previous four quarters. Net sales for the quarter reached Rs 70.68 crore, showing an upward trend from the average net sales of Rs 57.57 crore in the prior four quarters. Additionally, Profit After Tax (PAT) increased to Rs 20.08 crore, surpassing the average PAT of Rs 14.69 crore from the previous four quarters.

On the other hand, the company's Debtors Turnover Ratio has experienced a decline, now standing at 2.48 times, which is the lowest it has been in the last five half-yearly periods. This suggests a slowdown in the pace of settling its debtors, highlighting an area of concern amidst the overall growth in financial performance.

In light of these developments, there have been evaluation changes regarding Avantel's financial standing.

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