Kernex Microsystems Reports Strong Financial Metrics Amid Rising Interest Expenses

Kernex Microsystems (India), a small-cap player in the transport services industry, has recently undergone a financial trend adjustment reflecting its robust performance in the quarter ending March 2025. The company has reported significant improvements across various financial metrics, showcasing its operational strength.
Key indicators highlight Kernex's impressive return on capital employed (ROCE) at 19.89%, alongside a remarkable operating profit to interest ratio of 10.63 times. The profit before tax (PBT) less other income reached Rs 14.58 crore, while the profit after tax (PAT) stood at Rs 32.59 crore. Additionally, cash and cash equivalents have surged to Rs 34.33 crore, and the debtors turnover ratio is at a strong 8.02 times. Net sales for the quarter peaked at Rs 83.07 crore, with earnings per share (EPS) hitting Rs 19.45.

However, the company faces challenges, particularly with interest expenses, which have grown by 31.97% to Rs 1.61 crore.

In terms of market performance, Kernex has outperformed the Sensex over various time frames, notably achieving a staggering 8503.81% return over the past five years, compared to the Sensex's 166.43%. This remarkable return underscores the company's resilience and growth trajectory in a competitive landscape.