Setco Automotive Reports Financial Struggles Amid Rising Debt and Declining Profitability in June 2025

Setco Automotive has recently reported its financial results for the quarter ending June 2025, revealing notable challenges within its operations. The company's score has undergone a revision, reflecting a shift in its evaluation over the past three months.
Key indicators highlight areas of concern for Setco Automotive. The operating profit to interest ratio has reached its lowest point in five quarters at 0.37 times, suggesting difficulties in managing interest obligations. Additionally, the profit before tax (PBT) has recorded a significant decline, standing at Rs -44.00 crore, which marks a year-on-year decrease of 15.15%. Similarly, the profit after tax (PAT) has also fallen to Rs -33.80 crore, down 16.8% year-on-year, indicating a negative trend in profitability.

The company's debt-equity ratio has escalated to -1.61 times, the highest in the last five half-yearly periods, suggesting an increasing reliance on borrowing to sustain operations. Furthermore, the earnings per share (EPS) have dropped to Rs -2.61, reflecting a decrease in shareholder earnings. The debtors turnover ratio has also slowed, now at its lowest in five half-yearly periods at 10.29 times, indicating challenges in collecting receivables.

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