Pacific Industries Reports Highest Quarterly Sales Amid Declining Profitability and Increased Debt Costs

Pacific Industries, a microcap player in the Mining & Minerals sector, has recently reported its financial results for the quarter ending December 2024. The evaluation changes indicate a notable shift in the company's score, which has adjusted to -3 from a previous score of 7 over the last three months.
The financial data reveals that Pacific Industries achieved its highest quarterly net sales in the last five quarters, amounting to Rs 63.22 crore, suggesting a positive near-term sales trend. However, the company is facing challenges as well. The interest expense for the half-yearly period has grown significantly, reflecting increased borrowings, which may impact future financial stability. Additionally, the profit after tax (PAT) has shown a year-on-year decline of 25.42%, indicating a negative near-term trend in profitability.

Furthermore, the earnings per share (EPS) have reached their lowest point in five quarters at Rs 1.92, highlighting declining profitability. The company's reliance on non-operating income, which constitutes 122.63% of profit before tax, raises concerns about the sustainability of its business model. Lastly, the debtors turnover ratio has also reached a low of 3.45 times, suggesting a slowdown in the pace of settling receivables.

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