Centrum Capital Reports Mixed Q3 FY24-25 Results Amid Rising Debt Concerns
Centrum Capital announced its third-quarter financial results for FY24-25, showcasing record net sales of Rs 877.48 crore. However, the company faced challenges with a significant loss in profit before and after tax, alongside a high debt-equity ratio, leading to a mixed performance evaluation.
Centrum Capital, a small-cap player in the finance and non-banking financial company (NBFC) sector, has released its financial results for the third quarter of FY24-25 on January 24, 2025. The results indicate a flat performance overall, which has led to evaluation changes in the stock's assessment.The company reported its highest quarterly net sales at Rs 877.48 crore, reflecting a notable increase compared to the average net sales of Rs 678.72 crore from the previous four quarters. This suggests a favorable near-term sales trend for Centrum Capital.
However, the company encountered significant challenges, with profit before tax (PBT) recorded at Rs -118.18 crore, which represents a shift from the average PBT of Rs -64.62 crore in the previous four quarters. Similarly, profit after tax (PAT) fell to Rs -52.28 crore, down from the average PAT of Rs -35.23 crore. Additionally, the debt-equity ratio has reached a concerning 39.36 times, indicating increased borrowing to fund operations and potential liquidity stress.
Overall, these results have prompted a revision in its score, reflecting the mixed performance of Centrum Capital in the current financial landscape.
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