Hindustan Organic Chemicals Reports Mixed Financial Results Amid Rising Interest Costs in June 2025

Hindustan Organic Chemicals has recently reported its financial results for the quarter ending June 2025, revealing a complex picture of performance within the commodity chemicals industry. The company has experienced a notable adjustment in its evaluation, with its score declining to 0 from 1 over the past three months.
On a positive note, Hindustan Organic Chemicals reported net sales of Rs 163.89 crore, reflecting a growth of 22.3% compared to the average net sales of the previous four quarters. This indicates a favorable near-term sales trend. Additionally, the profit after tax (PAT) reached Rs -13.76 crore, marking the highest figure in the last five quarters, suggesting a positive near-term trend in profitability. Furthermore, cash and cash equivalents stood at Rs 254.22 crore, the highest in the last six half-yearly periods, indicating an improvement in short-term liquidity.

Conversely, the company faces challenges, particularly with a significant rise in interest costs, which have surged dramatically quarter on quarter. This increase points to heightened borrowings, while the operating profit to interest ratio has reached its lowest point in five quarters, indicating difficulties in managing interest payments. Additionally, the debt-equity ratio has risen to 0.20 times, suggesting that the company is increasingly reliant on borrowing to fund its operations, potentially stressing its liquidity situation.

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