Gloster Ltd Reports Q3 FY24-25 Results Amid Rising Debt and Declining Profits

Gloster Ltd, a microcap player in the textile industry, has recently reported its financial results for the quarter ending December 2024. The company experienced a very negative financial performance for Q3 FY24-25, with notable evaluation changes reflected in its score, which has shifted to -22 from -31 over the past three months.
On a positive note, Gloster Ltd reported net sales of Rs 177.69 crore, marking a year-on-year growth of 29.75%. This indicates a favorable near-term sales trend. However, the company is facing challenges as well. Interest expenses for the half-yearly period have surged to Rs 10.00 crore, reflecting a significant increase of 108.77% compared to the previous half-year. This rise in interest costs suggests that the company is relying more on borrowings to finance its operations.

Additionally, the profit before tax (PBT) has shown a concerning decline, recorded at Rs -2.79 crore, which represents a year-on-year drop of 444.44%. Profit after tax (PAT) also fell to Rs 0.83 crore, down 61.9% year-on-year. The debt-equity ratio has reached its highest point at 0.31 times, indicating a trend of increasing borrowings that may stress the company's liquidity. Furthermore, non-operating income constitutes 168.55% of PBT, raising concerns about the sustainability of its business model.

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