Zeal Aqua Reports Strong Q4 Growth Amid Rising Interest Expenses and Evaluation Score Increase

Zeal Aqua, a microcap player in the aquaculture industry, has recently reported its financial results for the quarter ending December 2024. The company has experienced notable developments in its financial metrics, leading to an adjustment in its evaluation score, which has risen to 9 from 7 over the past three months.
The financial results indicate a significant year-on-year growth in Profit After Tax (PAT), which reached Rs 6.27 crore, marking a 79.7% increase. This figure represents the highest PAT recorded in the last five quarters, reflecting a positive near-term trend. Additionally, net sales have also reached a peak of Rs 169.34 crore, showing a year-on-year growth of 24.17%. Operating profit has similarly reached its highest level in five quarters at Rs 11.85 crore, contributing to the overall positive financial landscape for the company.

However, there are areas of concern as well. Interest expenses have surged to Rs 7.95 crore, a 61.59% increase quarter-on-quarter, indicating rising borrowing costs. Furthermore, non-operating income has constituted a significant portion of profit before tax, raising questions about the sustainability of this income source.

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