Nexus Select Trust Reports Declining Profitability and Rising Debt in March 2025 Results

Nexus Select Trust, a large-cap player in the construction and real estate industry, has recently reported its financial results for the quarter ending March 2025. The results indicate a notable shift in the company's financial health, as reflected in the adjustments to its evaluation.
The operating profit to interest ratio has reached its lowest point in the last five quarters at 3.82 times, suggesting challenges in managing interest obligations. Additionally, the profit after tax (PAT) for the quarter stands at Rs 114.27 crore, which represents a decline of 11.2% compared to the average PAT of Rs 128.73 crore over the previous four quarters, indicating a concerning near-term trend.

Furthermore, the debt-equity ratio has risen to 0.37 times, marking the highest level in the last five half-yearly periods. This increase suggests that the company is relying more on borrowing to finance its operations, potentially straining its liquidity. Lastly, cash and cash equivalents have fallen to Rs 17.96 crore, the lowest in the last six half-yearly periods, highlighting a deterioration in short-term liquidity.

Overall, these financial results have led to a revision in Nexus Select Trust's score, reflecting the underlying challenges the company faces.

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