Indo Count Industries Reports Strong Sales Growth Amid Rising Debt Concerns

Feb 11 2025 06:15 PM IST
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Indo Count Industries has reported strong financial results for the quarter ending December 2024, with net sales reaching Rs 1,151.55 crore, a 61.41% year-on-year increase. Profit before tax rose to Rs 83.49 crore, while profit after tax grew by 30%. However, challenges include a declining operating profit to interest ratio and increased debt levels.
Indo Count Industries, a midcap player in the textile industry, has recently reported its financial results for the quarter ending December 2024. The company experienced a notable shift in its evaluation, with its score moving to -6 from -20 over the past three months.

The financial data reveals several positive trends for Indo Count Industries. Net sales reached Rs 1,151.55 crore, reflecting a significant year-on-year growth of 61.41%, marking the highest sales figure in the last five quarters. Additionally, the profit before tax (PBT) stood at Rs 83.49 crore, showing a year-on-year increase of 28.64%. The profit after tax (PAT) also demonstrated a positive trend, amounting to Rs 75.47 crore, which is a 30.0% growth compared to the previous year.

Conversely, some challenges are evident in the financial results. The operating profit to interest ratio has declined to 4.20 times, indicating a potential strain in managing interest obligations. Furthermore, the interest expense has reached its highest level in five quarters at Rs 35.53 crore, suggesting increased borrowing. The debt-equity ratio has also risen to 0.67 times, indicating a higher reliance on debt for funding operations, which may impact liquidity.

Overall, Indo Count Industries is navigating a complex financial landscape with both positive growth indicators and emerging challenges.

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