Suprajit Engineering Reports Record Profit Amid Rising Debt and Operational Challenges in June'25

Suprajit Engineering, a microcap player in the Auto Components & Equipment industry, has released its financial results for the quarter ending June 2025. The company reported a notable profit after tax (PAT) of Rs 48.09 crore, reflecting a significant growth compared to the average PAT of Rs 24.82 crore from the previous four quarters. This marks the highest PAT recorded in the last five quarters, indicating a positive near-term trend in profitability.
However, the financial results also reveal challenges. The profit before tax (PBT), adjusted for other income, was reported at Rs 32.01 crore, which shows a decline compared to the average PBT of Rs 37.80 crore from the previous four quarters. This trend suggests potential difficulties in maintaining operational profitability. Additionally, the company has seen a rise in interest costs, with interest expenses reaching Rs 48.89 crore over the past nine months, indicating increased borrowings.

Furthermore, non-operating income constituted a significant portion of the PBT, raising concerns about the sustainability of the company's income sources. The debt-equity ratio has also reached its highest level in recent periods, suggesting that the company may be relying more on debt to finance its operations.

In light of these developments, Suprajit Engineering has experienced an adjustment in its evaluation, with its score reflecting a shift from -10 to -4 over the last three months.

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