Kerala Ayurveda's Q2 financial results show strong growth and improved efficiency.
Kerala Ayurveda, a microcap pharmaceutical company, has reported strong financial results for the quarter ending September 2024. Despite a 'Strong Sell' call by MarketsMojo, the company's score has improved significantly in the last three months. Key factors contributing to this include a 1610.7% growth in Profit After Tax and a significant increase in Net Sales. The company's debt management has also shown improvement.
Kerala Ayurveda, a microcap pharmaceutical and drug company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.Despite this, Kerala Ayurveda has shown a very positive financial performance in the second quarter of the fiscal year 2024-2025. In fact, the company's score has improved from 5 to 25 in just the last three months.
One of the key factors contributing to this positive performance is the significant growth in Profit After Tax (PAT) for the quarter. At Rs 3.41 crore, the PAT has grown by a whopping 1610.7% compared to the average PAT of the previous four quarters, which was at Rs -0.23 crore. This trend is expected to continue in the near term.
The company's Net Sales for the quarter also saw a significant increase, reaching its highest at Rs 30.41 crore. This is a positive sign as the company has shown growth in sales for the last five quarters. Additionally, the Operating Profit to Interest ratio has also improved, indicating the company's ability to manage its interest payments.
Kerala Ayurveda's Operating Profit (PBDIT) for the quarter was at its highest at Rs 5.53 crore, and the Operating Profit Margin also saw an improvement, reaching its highest at 18.18%. This shows that the company's efficiency has improved.
Furthermore, the Profit Before Tax less Other Income (PBT) for the quarter was at its highest at Rs 2.84 crore, and the Earnings per Share (EPS) also saw an increase, reaching its highest at Rs 2.83. This indicates that the company has been able to create higher earnings for its shareholders.
In terms of debt management, Kerala Ayurveda has shown a positive trend as well. The company's Debt-Equity Ratio for the last five half-yearly periods has been at its lowest at 1.77 times, indicating a reduction in borrowing compared to equity capital.
Overall, Kerala Ayurveda's financial performance for the quarter ending September 2024 has been very positive, with various key indicators showing improvement. This is a promising sign for the company's future growth and success in the pharmaceutical and drug industry.
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