Kovai Medical Center Reports Mixed Q4 Results Amid Rising Interest Expenses and Profit Peaks

Kovai Medical Center & Hospital has recently reported its financial results for the quarter ending December 2024, revealing a mixed performance landscape. The company achieved its highest net sales in the last five quarters, reaching Rs 355.04 crore, alongside notable peaks in operating profit, profit before tax, and profit after tax, all of which indicate a positive near-term trend in these areas. Earnings per share also reached a high of Rs 52.83, reflecting enhanced profitability for shareholders.
However, the financial results also highlight some challenges. The operating profit to interest ratio has reached its lowest point in the last five quarters at 11.23 times, suggesting a decline in the company's capacity to manage interest obligations. Additionally, interest expenses have surged to Rs 9.16 crore, marking an increase of 11.17% quarter-over-quarter, which may indicate rising borrowing costs. The company also reported its highest non-operating income in the last five quarters, but this increase may not be sustainable over the long term.

In light of these developments, Kovai Medical has experienced an adjustment in its evaluation, with its score reflecting recent changes.

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