Indo Rama Synthetics Reports Strong Q4 Growth Amid Rising Debt Concerns

Feb 08 2025 08:41 AM IST
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Indo Rama Synthetics (India) has reported its financial results for the quarter ending December 2024, highlighting a significant improvement in profit metrics, with notable increases in Profit Before Tax and Profit After Tax. The company also achieved its highest net sales in five quarters, though it faces challenges with rising debt levels and a declining Debtors Turnover Ratio.
Indo Rama Synthetics (India), a small-cap player in the textile industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's financial health, as reflected in the adjustments to its evaluation.

The company has demonstrated a significant turnaround in its profit metrics, with Profit Before Tax (PBT) reaching Rs 11.12 crore, marking a substantial growth compared to the average PBT of the previous four quarters. Similarly, Profit After Tax (PAT) has also shown remarkable growth, now standing at Rs 13.59 crore. This positive trend is further supported by the highest net sales recorded at Rs 1,165.63 crore in the last five quarters, indicating a robust sales performance.

On the operational front, Indo Rama Synthetics has achieved its highest Operating Profit Margin at 5.43%, showcasing improved efficiency. However, challenges remain, particularly with a rising Debt-Equity Ratio of 3.99 times, suggesting increased borrowing to support operations, and a declining Debtors Turnover Ratio, which indicates a slower pace in settling debts.

Overall, the financial results reflect a complex landscape for Indo Rama Synthetics, with both positive developments and areas of concern.

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