Pritika Auto Industries Reports Strong Growth Amid Rising Debt and Inventory Challenges

Pritika Auto Industries has recently reported its financial results for the quarter ending June 2025, showcasing notable developments in its performance metrics. The company's score has undergone an adjustment, reflecting a significant shift in its evaluation over the past three months.
In terms of financial highlights, Pritika Auto's Profit After Tax (PAT) reached Rs 7.46 crore, marking a year-on-year growth of 41.56%. This positive trend is mirrored in the Profit Before Tax less Other Income (PBT), which stood at Rs 7.52 crore, demonstrating a growth of 40.8% compared to the average of the previous four quarters. Additionally, net sales hit a five-quarter high at Rs 114.61 crore, with a year-on-year increase of 28.5%. The operating profit also reached its peak at Rs 17.43 crore during this period, indicating a robust operational performance.

However, challenges remain for Pritika Auto. The interest expense has risen to Rs 9.87 crore, reflecting a 27.03% increase over the previous half-year, suggesting a reliance on increased borrowings. Furthermore, the inventory turnover ratio has declined to 2.45 times, indicating a slowdown in inventory sales. The debt-equity ratio has also reached its highest level in recent periods at 0.72 times, raising concerns about the company's liquidity.

Overall, Pritika Auto Industries is navigating a complex financial landscape, with both positive trends and areas of concern influencing its current evaluation.

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