Ashnoor Textile Mills Reports 46.45% Net Profit Growth Amid Financial Challenges in September 2024

Ashnoor Textile Mills, a microcap player in the textile industry, has recently undergone an adjustment in evaluation, reflecting its financial performance and market position. The company reported a significant growth in net profit of 46.45% for the quarter ending September 2024, showcasing a strong upward trend in its financial metrics. This marks the second consecutive quarter of positive results, indicating a consistent performance trajectory.
Key indicators such as profit before tax (PBT) less other income for the quarter stood at Rs 5.37 crore, demonstrating a remarkable growth rate of 814%. Additionally, the return on capital employed (ROCE) reached a notable 16.12%, highlighting the company's effective use of capital. Net sales for the quarter were reported at Rs 44.49 crore, reflecting a growth of 21%.

Despite these positive developments, the company faces challenges with a long-term fundamental strength characterized by a 4.35% compound annual growth rate in operating profits over the past five years. Furthermore, a high debt to EBITDA ratio of 3.35 times suggests some constraints in its ability to service debt.

Overall, Ashnoor Textile Mills continues to navigate a complex financial landscape, with its recent evaluation adjustment underscoring both its achievements and areas requiring attention.

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