Krishna Institute Reports Mixed Financial Results Amid Rising Debt and Interest Expenses

Krishna Institute of Medical Sciences has recently reported its financial results for the quarter ending December 2024, revealing a complex landscape for the large-cap hospital and healthcare services provider. The evaluation changes indicate a notable shift in the company's score, which has moved to a lower position compared to the previous three months.
On a positive note, the half-yearly net sales reached Rs 1,549.70 crore, reflecting a year-on-year growth of 23.16%. This suggests a favorable near-term sales trend for the company. However, several challenges are evident in the financial metrics. The quarterly interest expense has risen to Rs 25.70 crore, marking a significant increase and indicating higher borrowing levels. Additionally, the operating profit to interest ratio has reached its lowest point in five quarters at 7.28 times, highlighting concerns regarding the company's capacity to manage its interest obligations.

The debt-equity ratio has also escalated to 0.89 times, the highest in recent periods, suggesting that the company is increasingly reliant on debt to finance its operations. Furthermore, the debtors turnover ratio has declined to 6.96 times, indicating a slowdown in the pace of settling receivables. While non-operating income has peaked at Rs 17.80 crore, its sustainability remains uncertain.

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