Kalyani Forge Reports Strong Profit Growth Amid Rising Interest Costs in Q4 Results

Feb 11 2025 07:32 PM IST
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Kalyani Forge has announced its financial results for the quarter ending December 2024, highlighting significant growth in profitability with a Profit After Tax of Rs 5.74 crore, up 146.35% year-on-year. However, the company faces challenges from rising interest costs, which reached Rs 1.96 crore, the highest in five quarters.
Kalyani Forge, a microcap player in the castings and forgings industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable performance in terms of profitability, with the Profit After Tax (PAT) for the half-year reaching Rs 5.74 crore, reflecting a significant year-on-year growth of 146.35%. This positive trend is further supported by the Profit Before Tax (PBT), which surged to Rs 2.04 crore for the quarter, showcasing an impressive year-on-year increase of 1954.55%.

However, the company has also faced challenges, particularly with rising interest costs. The interest expense for the quarter hit Rs 1.96 crore, marking the highest level in the last five quarters and indicating a 24.05% increase quarter-on-quarter. This rise in interest expenses suggests an increase in borrowings, which could impact future financial flexibility.

Overall, Kalyani Forge's recent financial results reflect a mixed landscape, with strong growth in profitability juxtaposed against rising interest costs, leading to an adjustment in its evaluation.

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