Suprajit Engineering Reports Highest Operating Profit Amid Declining Profit After Tax in December 2024
Suprajit Engineering has announced its financial results for the quarter ending December 2024, reporting the highest operating profit in five quarters. However, the profit after tax for the half-year declined significantly year-on-year, and interest expenses reached a five-quarter high, indicating potential liquidity challenges ahead.
Suprajit Engineering, a midcap player in the auto ancillary industry, has recently released its financial results for the quarter ending December 2024. The company reported an operating profit (PBDIT) of Rs 97.05 crore, marking the highest figure in the last five quarters, indicating a positive trend in its near-term operating performance.However, the financial landscape presents challenges as well. The profit after tax (PAT) for the half-year stood at Rs 33.89 crore, reflecting a significant year-on-year decline. This negative trend in PAT suggests underlying issues that may impact the company's overall financial health. Additionally, the interest expense for the quarter reached Rs 19.23 crore, the highest in the last five quarters, with a notable quarter-on-quarter increase. This rise in interest costs points to increased borrowings, which may further strain the company's liquidity.
In light of these developments, Suprajit Engineering has experienced adjustments in its evaluation, with its score shifting from -13 to -7 over the past three months. This revision reflects the complexities of the current financial environment for the company.
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