Coastal Corporation Reports Strong Sales Growth Amid Rising Interest Expenses and Non-Operating Income Concerns

Coastal Corporation, a microcap player in the FMCG sector, has recently reported its financial results for the quarter ending March 2025. The company has experienced a notable adjustment in its evaluation, with its score shifting to 4 from -9 over the past three months.
The financial results reveal some positive developments for Coastal Corporation. The Profit After Tax (PAT) for the latest six months stands at Rs 0.92 crore, surpassing the Rs 0.31 crore recorded in the preceding twelve-month period. Additionally, net sales for the quarter reached Rs 157.08 crore, reflecting a year-on-year growth of 34.69%, indicating a favorable near-term sales trend.

However, there are also challenges highlighted in the financials. The interest expense for the latest six months has risen to Rs 12.56 crore, marking a growth of 37.42% compared to the previous half-year period, suggesting increased borrowings. Furthermore, the non-operating income for the quarter is significantly high, accounting for 8,860% of Profit Before Tax (PBT), with the latest figure reaching Rs 4.43 crore, the highest in the last five quarters. This reliance on non-business income raises concerns about sustainability.

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