Semac Consultants Reports Significant Sales Growth Amid Rising Debt Challenges in Q4 2024

Semac Consultants, a microcap company in the engineering and industrial equipment sector, recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's evaluation, with the score adjusting to -4 from -22 over the past three months.
The financial data reveals that Semac Consultants achieved net sales of Rs 46.05 crore, reflecting a significant growth of 73.8% compared to the average net sales of the previous four quarters, which stood at Rs 26.50 crore. This marks the highest quarterly sales in the last five quarters, suggesting a positive near-term sales trend. Additionally, the profit after tax (PAT) reached Rs -1.34 crore, the highest in the same timeframe, indicating a positive trend in profitability, despite the negative figure. The earnings per share (EPS) also reached Rs -4.29, the highest in five quarters, suggesting an increase in earnings for shareholders.

Conversely, the company faces challenges, including the highest quarterly interest expense of Rs 1.52 crore, which has risen by 14.29% quarter-over-quarter, indicating increased borrowings. The debt-equity ratio is at its highest in the last five half-yearly periods at 0.57 times, suggesting a reliance on debt for operational funding. Furthermore, the debtors turnover ratio has declined to its lowest at 3.14 times, indicating a slower pace in settling debts.

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