TTK Healthcare Reports Strong Q3 FY24-25 Results Amid Inventory Challenges and Non-Operating Income Concerns
TTK Healthcare announced its third-quarter financial results for FY24-25, reporting a significant increase in Profit Before Tax to Rs 4.75 crore and Profit After Tax at Rs 16.73 crore. However, the company faces challenges with a declining inventory turnover ratio and a high reliance on non-operating income.
TTK Healthcare, a small-cap player in the pharmaceuticals and drugs industry, has reported its financial results for the third quarter of FY24-25 on January 24, 2025. The company has undergone an adjustment in its evaluation, with its score changing to 1 from -2 over the last three months.The financial results highlight some notable developments. TTK Healthcare's Profit Before Tax (PBT) reached Rs 4.75 crore, showcasing a year-on-year growth of 165.36%. Additionally, the Profit After Tax (PAT) was reported at Rs 16.73 crore, which is a 29.8% increase compared to the previous year.
Despite these positive indicators, TTK Healthcare faces challenges. The inventory turnover ratio has fallen to 7.33 times, marking a slowdown in the pace of selling inventory over the last five half-year periods. Moreover, non-operating income accounted for 78.97% of PBT, with the highest quarterly figure recorded at Rs 17.84 crore in the last five quarters. This heavy reliance on non-business activities raises questions about the sustainability of TTK Healthcare's financial model.
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