Balu Forge Industries Reports Strong Growth Amid Rising Interest Expenses in August 2025 Results

Balu Forge Industries, a microcap player in the Castings & Forgings industry, has recently reported its financial results for the quarter ending June 2025. The results, declared on August 7, 2025, indicate a notable shift in the company's evaluation, with the score adjusting from 30 to 21 over the past three months.
The financial data reveals several positive trends for Balu Forge. The Profit After Tax (PAT) for the latest six months stands at Rs 119.72 crore, reflecting a significant year-on-year growth of 91.71%. Additionally, net sales reached Rs 502.85 crore, marking a year-on-year increase of 49.44%. The company's operating profit to interest ratio has also reached its highest level in the last five quarters at 32.41 times, suggesting an enhanced capacity to manage interest obligations. Furthermore, the debt-equity ratio has improved to 0.04 times, indicating a consistent reduction in borrowing relative to equity capital. The debtors turnover ratio has also shown positive movement, achieving its highest level at 2.82 times, which points to improved efficiency in settling receivables.

However, the financial results also highlight a concern, as interest expenses have risen to Rs 6.44 crore, growing by 23.85% compared to the previous half-year period, suggesting an increase in borrowing costs.

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