Cantabil Retail India Reports Strong Q3 Growth Amid Rising Interest Costs and Receivables Challenges

Cantabil Retail India, a smallcap player in the textile industry, has recently reported its financial results for the quarter ending December 2024. The company has experienced notable developments in its financial metrics, reflecting a positive trajectory in several key areas.
The operating profit to interest ratio has reached its highest level in five quarters at 7.78 times, indicating an enhanced capacity to manage interest obligations. Additionally, the profit before tax (PBT) has shown significant growth, recorded at Rs 43.14 crore, marking a year-on-year increase of 45.99%. Similarly, the profit after tax (PAT) stands at Rs 34.39 crore, also reflecting a robust year-on-year growth of 42.7%.

Net sales have peaked at Rs 222.92 crore, demonstrating a year-on-year growth of 27.78%, while the operating profit margin has improved to 32.52%, the highest in the last five quarters. Earnings per share (EPS) have also reached Rs 4.11, showcasing increased profitability for shareholders.

However, the company faces challenges, including rising interest costs, which have reached Rs 9.32 crore, and a declining debtors turnover ratio, indicating a slower pace in settling receivables.

Overall, Cantabil Retail has undergone an adjustment in its evaluation, reflecting the evolving dynamics of its financial performance.

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