Kanco Tea & Industries Reports Financial Struggles Amid Rising Borrowing Costs in March 2025

Kanco Tea & Industries has recently reported its financial results for the quarter ending March 2025, revealing notable challenges within its operations. The company's score has undergone an adjustment, reflecting a shift in its evaluation over the past three months.
The financial data indicates that Profit Before Tax less Other Income (PBT) has reached Rs -13.21 crore, marking a significant decline of 21.08% year on year. This trend suggests ongoing difficulties in maintaining profitability. Additionally, the interest expense for the nine-month period has increased to Rs 2.58 crore, highlighting a rise in borrowing costs.

Kanco Tea's ability to manage its interest payments appears to be under pressure, with the Operating Profit to Interest ratio recorded at its lowest point in five quarters, at -45.63 times. Furthermore, the Operating Profit (PBDIT) has also hit a low of Rs -12.32 crore, indicating a negative trend in operational efficiency.

The Profit After Tax (PAT) stands at Rs -9.78 crore, reflecting a year-on-year decline of 5.3%. The Earnings per Share (EPS) has reached Rs -19.10, further emphasizing the challenges in generating shareholder value. While non-operating income has seen an uptick, its sustainability remains uncertain.

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