CCL Products Reports Mixed Financial Results Amid Rising Borrowing Costs and Profit Declines

CCL Products (India), a midcap player in the Tea/Coffee industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's financial performance, with the score reflecting a revision in its evaluation.
On a positive note, CCL Products has achieved its highest Debtors Turnover Ratio in the last five half-yearly periods, recorded at 6.86 times. This suggests that the company has been effective in settling its debtors more swiftly, which is a favorable operational aspect.

Conversely, several challenges are evident in the financial data. The Operating Profit to Interest ratio has reached its lowest point at 4.07 times over the last five quarters, indicating difficulties in managing interest payments. Additionally, the Debt-Equity Ratio has increased to 1.09 times, suggesting a trend of rising borrowings to support operations, which may impact liquidity. The company has also reported the highest quarterly interest expense at Rs 30.54 crore, reflecting a significant increase in borrowing costs. Furthermore, both Profit Before Tax and Profit After Tax have shown declines compared to previous averages, alongside a decrease in Earnings per Share, which highlights a reduction in profitability.

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