NTC Industries Shows Strong Financial Health Amid Rising Interest Expenses and Non-Core Reliance

NTC Industries, a microcap player in the FMCG sector, has recently undergone a significant evaluation revision, reflecting its robust financial performance for the quarter ending March 2025. The company has reported impressive metrics, including a record Return on Capital Employed (ROCE) of 5.92% and a remarkably low debt-equity ratio of 0.02 times, indicating strong financial health and minimal leverage.
In terms of operational performance, NTC Industries achieved its highest quarterly figures with a PBDIT of Rs 5.79 crore and net sales reaching Rs 23.60 crore. The profit before tax, excluding other income, also peaked at Rs 3.63 crore, while the net profit stood at Rs 5.54 crore, translating to an earnings per share of Rs 3.82.

However, the company faces challenges, particularly with interest expenses, which have surged by 58.95% over the last six months, and non-operating income constituting 50.07% of profit before tax, indicating reliance on non-core activities.

In terms of market performance, NTC Industries has outperformed the Sensex over various time frames, notably achieving a remarkable 68.41% return over the past year compared to the Sensex's 10.02%. This trend highlights the company's resilience and ability to navigate market fluctuations effectively.