Arihant Foundations Shows Strong Profit Growth Amid Rising Interest Expenses and Non-Operating Income Reliance

Arihant Foundations & Housing, a small-cap player in the realty sector, has recently undergone a financial trend adjustment reflecting its performance metrics for the quarter ending March 2025. The company reported a significant growth in profit before tax, reaching Rs 7.23 crore, which marks an impressive increase of 299.45%. Additionally, the return on capital employed (ROCE) stands at a robust 12.79%, while the debtors turnover ratio is at its highest, recorded at 3.45 times. The net sales for the quarter also peaked at Rs 67.43 crore, and the debt-equity ratio is notably low at 0.47 times, indicating a strong balance sheet.
However, challenges persist, particularly with interest expenses, which have risen to Rs 9.39 crore. Furthermore, non-operating income constitutes 49.19% of the profit before tax, suggesting reliance on income sources outside of core operations.

In terms of market performance, Arihant Foundations & Housing has outperformed the Sensex significantly over various time frames. Over the past year, the stock has surged by 805.40%, compared to the Sensex's 10.02% return. This trend highlights the company's strong recovery and market positioning within the realty sector.