Asahi Songwon Colors Reports Strong Q4 Growth Amid Rising Interest Expenses

Asahi Songwon Colors, a microcap player in the Dyes & Pigments industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable performance in several key areas, with the company achieving a Profit After Tax (PAT) of Rs 6.94 crore, reflecting a significant year-on-year growth of 1,052.74%. This performance marks a positive trend, as the PAT for the half-year has already surpassed that of the previous twelve months.
Net sales for the same period reached Rs 275.33 crore, showcasing a year-on-year increase of 39.42%. Additionally, the Profit Before Tax (PBT) for the quarter stood at Rs 2.73 crore, which is a 30% rise compared to the average PBT of the previous four quarters.

However, the company is also facing challenges. Interest expenses have risen to Rs 12.63 crore, up 34.79% over the preceding nine months, indicating increased borrowings. Furthermore, non-operating income has constituted a significant portion of the PBT, raising concerns about the sustainability of this income stream.

In light of these developments, Asahi Songwon has experienced an adjustment in its evaluation, with its score reflecting recent changes.

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