Praj Industries Reports Declining Financial Performance Amid Improved Debtors Turnover Ratio in June 2025

Praj Industries, a small-cap player in the industrial manufacturing sector, has recently reported its financial results for the quarter ending June 2025. The results indicate a significant shift in the company's financial health, with a notable adjustment in its evaluation score, which has moved to -23 from -17 over the past three months.
On a positive note, the company has achieved its highest Debtors Turnover Ratio in the last five half-yearly periods, recorded at 5.81 times, suggesting improved efficiency in settling debts. However, the overall financial performance reveals several challenges. Profit Before Tax less Other Income (PBT) has seen a substantial decline, reported at Rs 1.02 crore, reflecting a year-on-year decrease of 98.48%. Similarly, Profit After Tax (PAT) has also dropped significantly to Rs 5.34 crore, marking a 91.4% decline year-on-year and the lowest figure in the last five quarters.

Net sales have reached a low of Rs 640.20 crore, with an annual decrease of 8.43%. Operating profit and operating profit margin have also hit their lowest points in recent quarters, indicating a concerning trend in the company's operational efficiency. Additionally, a high percentage of non-operating income relative to PBT raises questions about the sustainability of Praj Industries' business model.

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