Udaipur Cement Works Reports Strong Sales Amid Significant Profitability Challenges in Q4 2024

Udaipur Cement Works has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of performance within the cement industry. The company recorded net sales of Rs 369.34 crore, marking the highest figure in the last five quarters and reflecting a year-on-year growth of 23.28%. This positive sales trend indicates a robust demand for the company's products in the near term.
However, the financial results also highlight significant challenges. Profit Before Tax (PBT) has shown a notable decline, falling to Rs 4.25 crore, which represents a year-on-year decrease of 82.98%. Similarly, Profit After Tax (PAT) has decreased to Rs 3.87 crore, down 79.4% compared to the previous year. These figures suggest a troubling trend in profitability.

Additionally, the company's interest expenses have risen to Rs 85.60 crore, reflecting a 53.65% increase over the preceding nine months, indicating a reliance on increased borrowings. Furthermore, the Debtors Turnover Ratio has reached its lowest point in five half-yearly periods at 15.69 times, suggesting a slowdown in the pace of settling debts.

In light of these developments, Udaipur Cement has experienced an adjustment in its evaluation, with its score shifting to -6 from -18 over the last three months.

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