Garg Furnace Reports Strong Financial Growth Amid Concerns Over Non-Operating Income Reliance

Garg Furnace, a microcap player in the Iron & Steel Products industry, has recently reported its financial results for the quarter ending March 2025. The results, declared on May 30, 2025, indicate a notable shift in the company's evaluation, with its score reflecting an adjustment from 8 to 9 over the past three months.
The financial performance showcases several positive trends. The Profit After Tax (PAT) reached Rs 3.28 crore, marking a significant growth compared to the average of Rs 1.80 crore from the previous four quarters. Additionally, net sales hit a five-quarter high at Rs 74.16 crore, indicating a robust sales trajectory. Operating Profit (PBDIT) also peaked at Rs 2.57 crore, while Profit Before Tax (PBT) recorded its highest figure at Rs 2.12 crore during the same period. Furthermore, the Earnings per Share (EPS) rose to Rs 6.55, reflecting enhanced profitability for shareholders.

However, it is important to note that a considerable portion of the Profit Before Tax (PBT), specifically 35.37%, is derived from non-operating income. This reliance on non-business activities raises questions about the sustainability of the company's income model.

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