Rane Holdings Reports Strong Sales Growth Amid Declining Profitability Metrics for Q4 2024
Rane Holdings has reported its financial results for the quarter ending December 2024, showcasing a significant year-on-year growth in net sales, reaching Rs 1,240.56 crore. However, the company faced challenges with profitability, as both Profit Before Tax and Profit After Tax saw substantial declines, alongside a drop in operating profit margin and Earnings per Share.
Rane Holdings, a small-cap player in the finance/NBFC sector, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's financial landscape, with the overall evaluation reflecting a decline in its score. On a positive note, Rane Holdings achieved net sales of Rs 1,240.56 crore, marking a significant year-on-year growth of 48.21%. This figure represents the highest quarterly sales recorded in the last five quarters, suggesting a robust near-term sales trend.
Conversely, the company faced challenges in profitability metrics. Profit Before Tax less Other Income (PBT) decreased to Rs 14.78 crore, reflecting a substantial year-on-year decline of 72.87%. Similarly, Profit After Tax (PAT) fell sharply to Rs 3.45 crore, down 91.2% year-on-year. The operating profit margin also reached its lowest point in five quarters at 6.30%, indicating a decline in operational efficiency. Additionally, Earnings per Share (EPS) dropped to Rs 2.27, further highlighting the company's struggles in generating shareholder value.
Overall, Rane Holdings has experienced significant evaluation changes in its financial performance, prompting a revision in its score.
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