Hindustan Adhesives Reports December 2024 Results Amid Rising Interest Costs and Declining Debt Management

Hindustan Adhesives, a microcap player in the plastic products industry, has released its financial results for the quarter ending December 2024. The evaluation changes reflect a notable shift, with the score adjusting to -4 from a previous score of 8 over the last three months.
The financial data reveals several key trends. Interest expenses for the half-year period have reached Rs 3.05 crore, marking a growth of 22% compared to the previous half-year. This rise in interest costs indicates an increase in borrowings, which may impact the company's financial stability. Additionally, the Debtors Turnover Ratio has recorded its lowest point at 7.36 times, showing a consistent decline over the last five half-year periods. This trend suggests a slowdown in the company's ability to settle its debts.

On a quarterly basis, non-operating income has peaked at Rs 1.43 crore, the highest in the last five quarters. However, reliance on income from non-business activities raises questions about sustainability moving forward.

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