Kitex Garments Reports Strong December 2024 Results Amid Rising Debt Concerns

Kitex Garments, a smallcap player in the textile industry, recently announced its financial results for the quarter ending December 2024. The company reported a notable performance, with significant year-on-year growth in key metrics. Profit Before Tax less Other Income (PBT) reached Rs 47.21 crore, reflecting an 85.14% increase compared to the previous year. Similarly, Profit After Tax (PAT) surged to Rs 41.03 crore, marking a remarkable growth of 172.3% year-on-year. Net sales also hit a record high of Rs 276.32 crore, showing a 68.35% increase from the same period last year.
However, the financial landscape also presents challenges for Kitex Garments. The interest expense for the half-yearly period rose to Rs 6.94 crore, indicating a 40.77% increase, which suggests a rise in borrowings. Additionally, the debt-equity ratio reached its highest point in the last five half-yearly periods at 0.92 times, signaling potential liquidity concerns. The company also reported the highest non-operating income in the last five quarters at Rs 8.04 crore, raising questions about the sustainability of this income source.

Overall, Kitex Garments has experienced evaluation changes in its financial score, reflecting the complexities of its current operational environment.

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