Cosmo Ferrites Reports December 2024 Results Highlighting Profit Improvements Amid Liquidity Concerns

Feb 13 2025 06:32 PM IST
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Cosmo Ferrites has announced its financial results for the quarter ending December 2024, highlighting improvements in operating profit and profit before tax. The company achieved its highest operating profit to interest ratio in five quarters. However, challenges include a decline in cash reserves and an increased debt-equity ratio.
Cosmo Ferrites, a microcap player in the electronics components industry, has recently reported its financial results for the quarter ending December 2024. The evaluation changes reflect a notable shift, with the score moving to 1 from -7 over the past three months.

The latest financials indicate several positive trends for Cosmo Ferrites. The operating profit to interest ratio has reached its highest point in five quarters at 1.15 times, suggesting an enhanced capacity to manage interest obligations. Additionally, the profit before tax (PBT) has shown improvement, recording its highest figure in the same timeframe at Rs -0.99 crore. Similarly, profit after tax (PAT) has also reached a peak of Rs -0.45 crore, indicating a positive near-term trend. Earnings per share (EPS) have improved to Rs -0.37, reflecting a rise in profitability and higher earnings for shareholders.

Conversely, some challenges persist. The cash and cash equivalents have dropped to Rs 4.22 crore, marking the lowest level in the last six half-yearly periods, which raises concerns about short-term liquidity. Furthermore, the debt-equity ratio has climbed to 2.73 times, the highest in five half-yearly periods, indicating increased borrowing to support operations and potential liquidity stress.

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