K G Denim Reports Significant Decline in Profitability Amidst Operational Gains in March 2025

K G Denim, a microcap player in the Garments & Apparels industry, has reported its financial results for the quarter ending March 2025. The company has experienced a notable shift in its evaluation, with its score declining to -32 from -25 over the past three months.
In terms of operational performance, K G Denim recorded its highest operating profit (PBDIT) in the last five quarters at Rs -0.69 crore, indicating a positive near-term trend in this area. However, the company faces significant challenges as evidenced by its profit after tax (PAT), which stood at Rs -20.68 crore, reflecting a substantial year-on-year decline of 84.72%. This trend suggests a very negative outlook for profitability.

Net sales for the quarter were reported at Rs 7.27 crore, marking a significant drop of 76.6% compared to the average of the previous four quarters. This decline is consistent with the downward trajectory observed over the last five quarters. Additionally, profit before tax (PBT) also fell to Rs -21.17 crore, down 21.3% from the previous four-quarter average.

On the financial burden side, interest expenses surged to Rs 22.49 crore, the highest in five quarters, indicating increased borrowings. Conversely, non-operating income reached Rs 7.78 crore, the highest in the last five quarters, although its sustainability remains uncertain.

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