Fertilizers & Chemicals Travancore Reports Strong Revenue Amid High Leverage Concerns

Fertilizers & Chemicals Travancore (F A C T) has recently undergone a financial trend adjustment, reflecting notable changes in its performance metrics. The company reported a higher profit after tax (PAT) of Rs 25.14 crore over the last six months, indicating a solid profitability trend. Additionally, net sales for the quarter reached a record Rs 1,629.30 crore, showcasing strong revenue generation capabilities.
However, challenges remain for F A C T. The debt-equity ratio stands at a concerning 27.70 times, suggesting a high level of leverage that could impact financial stability. Furthermore, the profit before tax (PBT) less other income for the quarter was recorded at Rs -30.10 crore, marking a decline of 11.4% compared to the previous four-quarter average. The debtors turnover ratio is also low at 0.83 times, indicating potential issues with receivables management.

In terms of market performance, F A C T has shown resilience, with a stock return of 4.64% over the past year, compared to a 5.73% return from the Sensex. Over a longer horizon, the company has significantly outperformed the index, with a remarkable 661.29% return over three years and an impressive 1849.57% over five years. These figures highlight the company's ability to navigate market fluctuations effectively.