Creative Newtech Reports Strong Growth Amid Ongoing Operational Challenges

Creative Newtech has recently undergone a financial trend adjustment, reflecting a notable improvement in its performance metrics for the quarter ending September 2025. The company's net sales reached Rs 655.75 crore, showcasing a robust growth rate of 59.39%. Additionally, the company reported its highest PBDIT at Rs 22.88 crore, with an operating profit to net sales ratio of 3.49%, indicating effective cost management and operational efficiency.
The profit before tax, excluding other income, also hit a record high of Rs 17.96 crore, while the profit after tax stood at Rs 18.95 crore, translating to an earnings per share of Rs 12.62. These figures highlight a strong operational performance during the quarter.

However, challenges remain for Creative Newtech, particularly in its return on capital employed (ROCE), which is currently at 18.55%, the lowest in the half-year period. Additionally, the debtors turnover ratio is at 4.45 times, indicating potential issues in receivables management.

In terms of market performance, Creative Newtech's stock has experienced fluctuations, with a current price of Rs 679.45, down from a previous close of Rs 693.35. Over the past year, the stock has underperformed compared to the Sensex, with a year-to-date return of -26.77% against the Sensex's 9.42%. However, the company has shown resilience over a longer horizon, with a five-year return of 478.01%, significantly outperforming the Sensex's 103.87%.