SG Mart Reports Strong Q3 FY24-25 Sales Growth Amid Profitability Concerns

SG Mart, a small-cap player in the textile industry, has released its financial results for the third quarter of FY24-25, showcasing a notable performance in net sales and profit after tax. The company reported net sales of Rs 1,281.96 crore, indicating a substantial year-on-year growth of 71.33%. Additionally, the profit after tax (PAT) reached Rs 27.63 crore, reflecting a 60.7% increase compared to the previous year.
Despite these positive indicators, there are areas of concern within SG Mart's financials. The profit before tax (PBT), excluding other income, has experienced a decline of 24.80% year-on-year, totaling Rs 10.19 crore. A significant issue is the high proportion of non-operating income, which accounts for 72.49% of the PBT. This figure, recorded at Rs 26.85 crore, represents the highest level in the last five quarters, prompting questions about the sustainability of the company's income sources. Overall, while SG Mart demonstrates strong sales and profit growth, challenges related to core profitability and reliance on non-operating income remain critical points of concern.

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