Dai-ichi Karkaria Reports Strong Q3 FY24-25 Growth Amid Debt Collection Challenges

Dai-ichi Karkaria, a microcap player in the chemicals industry, has reported its financial results for the third quarter of FY24-25, with results declared on January 23, 2025. The company has experienced notable growth in its Profit After Tax (PAT), which reached Rs 1.47 crore, reflecting a substantial increase compared to the average PAT of Rs 0.60 crore over the previous four quarters. Additionally, net sales have reached Rs 40.71 crore, marking the highest level in the last five quarters, indicating a favorable sales trend.
Earnings per Share (EPS) also achieved a five-quarter high at Rs 3.52, showcasing a positive trajectory in profitability and earnings for shareholders. However, the company is encountering challenges, as evidenced by a decline in the Debtors Turnover Ratio, which has fallen to 4.68 times, the lowest in the last five half-year periods. This suggests a slowdown in the collection of debts. Furthermore, non-operating income has surged to 124.51% of Profit Before Tax (PBT), with Rs 1.27 crore reported, raising questions about the sustainability of this income source.

In light of these developments, there have been evaluation changes regarding the stock's score.

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