Olectra Greentech Reports Strong Q4 Growth Amid Liquidity and Inventory Challenges

Olectra Greentech has recently reported its financial results for the quarter ending December 2024, showcasing a mix of positive developments and challenges. The company has demonstrated significant growth in key financial metrics, with Profit Before Tax (PBT) reaching Rs 59.73 crore, reflecting a year-on-year increase of 90.65%. Similarly, Net Sales for the quarter stood at Rs 515.37 crore, marking a 50.63% rise compared to the previous year. The Profit After Tax (PAT) also showed strong performance, amounting to Rs 46.33 crore, which is a 71.7% increase year-on-year.
On the liquidity front, Olectra Greentech reported its highest cash and cash equivalents in the last six half-yearly periods, totaling Rs 218.73 crore, indicating an improvement in short-term liquidity. However, the company faces challenges, particularly with its Inventory Turnover Ratio, which has reached its lowest point at 4.86 times, suggesting a slowdown in inventory sales. Additionally, the Debt-Equity Ratio has risen to 0.19 times, indicating an increase in borrowing to support operations, which may raise concerns about liquidity.

Overall, Olectra Greentech's recent financial results reflect a complex landscape of growth and potential liquidity challenges.

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