Hubtown Reports Significant PAT Growth Amid Rising Interest Expenses and Declining Sales

Hubtown, a small-cap player in the realty sector, has recently reported its financial results for the quarter ending March 2025. The results, declared on May 22, 2025, indicate a notable shift in the company's evaluation, with its score adjusting to 13 from 18 over the past three months.
The financial data reveals a significant growth in Profit After Tax (PAT), which stands at Rs 3.53 crore, reflecting a 131% increase compared to the average PAT of Rs -11.40 crore from the previous four quarters. This positive trend in PAT suggests a favorable near-term outlook for the company's profitability.

However, challenges are evident as well. The interest expense for the nine-month period has surged to Rs 120.64 crore, marking a 190.07% increase over the preceding nine months. This rise in interest costs indicates a reliance on increased borrowings. Additionally, net sales for the quarter have declined to Rs 96.75 crore, down 7.3% from the average of Rs 104.38 crore in the previous four quarters, pointing to a negative trend in sales performance. Furthermore, the company's non-operating income constitutes 133.40% of its Profit Before Tax (PBT), raising concerns about the sustainability of its income sources.

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