Primo Chemicals Reports Strong Profit Growth Amid Mixed Financial Indicators in February 2025

Feb 14 2025 06:50 PM IST
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Primo Chemicals announced its financial results for the quarter ending December 2024, revealing a notable increase in Profit After Tax to Rs 2.29 crore and record net sales of Rs 143.85 crore. Despite these gains, challenges such as declining inventory and debtors turnover ratios raise concerns about sustainability.
Primo Chemicals, a microcap player in the chemicals industry, recently reported its financial results for the quarter ending December 2024, with the announcement made on February 14, 2025. The company has experienced notable changes in its evaluation, reflecting a shift in its financial landscape.

The financial results indicate a significant growth in Profit After Tax (PAT), which reached Rs 2.29 crore, marking a substantial turnaround from an average loss in the previous four quarters. Additionally, net sales hit a record high of Rs 143.85 crore, showcasing consistent growth over the last five quarters. The operating profit also reached its peak at Rs 18.66 crore, contributing to an improved operating profit margin of 12.97%.

However, not all aspects of the financial performance are favorable. The inventory turnover ratio has declined, indicating a slower pace in selling inventory, while the debtors turnover ratio has also decreased, suggesting challenges in settling debts. Furthermore, a significant portion of the company's income is derived from non-operating activities, raising concerns about sustainability.

Overall, the evaluation of Primo Chemicals reflects a complex picture of growth and challenges.

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