Ramky Infrastructure Reports Strong Q3 FY24-25 Growth Amid Debt Reduction and High Receivables Management

Ramky Infrastructure, a small-cap player in the capital goods sector, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's evaluation, with a revision in its score reflecting a positive trajectory over the past three months.
The financial performance for Q3 FY24-25 shows significant growth in key metrics. Profit Before Tax (PBT) reached Rs 50.72 crore, marking a year-on-year increase of 157.46%. Similarly, Profit After Tax (PAT) stood at Rs 56.38 crore, demonstrating a year-on-year growth of 54.6%. These figures suggest a robust near-term trend in profitability.

Additionally, Ramky Infrastructure has achieved a commendable debt-equity ratio of 0.37 times, the lowest in the last five half-yearly periods, indicating a strategic reduction in borrowing relative to equity capital. Furthermore, the company has excelled in managing its receivables, as evidenced by a Debtors Turnover Ratio of 5.30 times, the highest recorded in the same timeframe.

However, it is important to note that a significant portion of the company's income, 43.89%, is derived from non-operating activities, which raises questions about the sustainability of its business model.

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