Damodar Industries Reports Mixed Financial Results Amid Profit Growth and Sales Decline in August 2025

Damodar Industries, operating in the Garments & Apparels sector, has recently reported its financial results for the quarter ending June 2025. The results, declared on August 2, 2025, indicate a mixed performance for the microcap company.
On a positive note, the Profit After Tax (PAT) for the latest six months stands at Rs 5.53 crore, reflecting a significant year-on-year growth of 259.09%. This figure surpasses the PAT of Rs 3.89 crore from the preceding twelve-month period, suggesting a favorable trend in profitability. Additionally, the company has achieved its lowest Debt-Equity Ratio in the last five half-yearly periods at 1.31 times, indicating a reduction in borrowing relative to equity capital.

Conversely, the financial results also highlight challenges. Net Sales for the latest six months have shown a decline, reported at Rs 188.50 crore, which reflects a negative year-on-year trend. Furthermore, the company's operating cash flow has reached its lowest point in three years at Rs 37.40 crore, signaling a decrease in cash revenues from business operations. The reliance on non-operating income, which constitutes 178.44% of Profit Before Tax, raises concerns about sustainability. Additionally, the company has recorded its lowest dividend per share and payout ratio in five years, indicating a reduced distribution of profits to shareholders.

In light of these developments, Damodar Industries has experienced an adjustment in its evaluation, with its score shifting to 0 from -6 over the past three months.

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