NR Agarwal Industries Reports Mixed Q3 Results Amid Rising Costs and Non-Operating Income Concerns

NR Agarwal Industries, operating in the Paper & Paper Products sector, has recently reported its financial results for the quarter ending December 2024. The results indicate a complex financial landscape for the company. Notably, net sales for the quarter reached Rs 417.91 crore, reflecting a growth of 23.1% compared to the average net sales of the previous four quarters, which stood at Rs 339.55 crore. This suggests a positive near-term sales trend.
However, the financial performance also reveals challenges. The company's profit after tax (PAT) for the quarter was Rs 12.73 crore, which represents a decline of 13.4% from the average PAT of Rs 14.71 crore over the previous four quarters, indicating a negative near-term trend in profitability. Additionally, the interest expense for the half-yearly period has risen significantly to Rs 31.90 crore, marking a growth of 73.37% over the previous half-year, which points to increased borrowings and rising costs.

Furthermore, the company's non-operating income has reached a notable level, accounting for 149.57% of profit before tax, with the highest quarterly figure recorded at Rs 13.85 crore in the last five quarters. This reliance on non-business income raises concerns about sustainability.

In light of these developments, NR Agarwal Industries has experienced an adjustment in its evaluation, with its score shifting to -13 from -25 over the last three months.

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