Super Tannery Reports Mixed Financial Results Amid Strong Sales Growth and Rising Costs in December 2024

Super Tannery, a microcap player in the leather industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's evaluation, with its score reflecting a significant adjustment from the previous period.
The financial data reveals that Super Tannery achieved net sales of Rs 151.53 crore for the half-year, marking a year-on-year growth of 28.61%. This positive sales trend suggests a robust demand for the company's products. Additionally, the inventory turnover ratio reached a high of 4.68 times, indicating that the company has been effective in managing its inventory levels and selling products efficiently.

On the profitability front, the profit after tax (PAT) for the nine-month period stood at Rs 4.79 crore, showcasing a year-on-year growth of 30.52%. Furthermore, cash and cash equivalents have also reached their highest level in the last six half-yearly periods at Rs 13.81 crore, reflecting an improvement in short-term liquidity.

However, the financial results also highlight some challenges. Interest expenses have risen to Rs 1.75 crore, growing significantly quarter on quarter, which points to increased borrowings. Additionally, the operating profit to interest ratio has declined to its lowest level in five quarters, indicating potential difficulties in managing interest obligations.

Overall, Super Tannery's recent financial performance presents a mixed picture, with both positive trends and areas of concern influencing its evaluation.

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