Centrum Capital Reports Strong Financial Performance in Q1 FY25, with Significant Growth in Key Areas

Centrum Capital, a smallcap finance company, has recently announced its financial results for the quarter ended March 2024. The company has shown positive performance in this quarter, with a significant improvement in its financial score from 5 to 19 in the last 3 months.

One of the key highlights of the quarter is the growth in Profit Before Tax (PBT) by 138.5% to Rs 19.03 crore, compared to the average PBT of the previous four quarters which was at Rs -49.41 crore. This indicates a very positive trend in the near term for the company’s PBT. Similarly, the Profit After Tax (PAT) has also shown a growth of 104.8% to Rs 1.61 crore, compared to the average PAT of the previous four quarters which was at Rs -33.32 crore.

The company’s net sales have also seen a positive trend, with a growth of 34.6% to Rs 654.84 crore in this quarter, compared to the average net sales of the previous four quarters which was at Rs 486.59 crore. This indicates a strong performance in terms of sales for Centrum Capital. The operating profit (PBDIT) has also been at its highest in the last five quarters, at Rs 340.50 crore, showing a positive trend in the near term.

The company’s efficiency has also improved, with the operating profit margin at its highest in the last five quarters, at 52.00%. This indicates that Centrum Capital is managing its operations effectively. The earnings per share (EPS) have also increased to Rs 0.04, showing an increase in profitability and creating higher earnings for shareholders.

However, one area of concern for the company is its debt-equity ratio, which is at its highest in the last five half yearly periods, at 24.45 times. This indicates that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Centrum Capital has shown a positive financial performance in the quarter ended March 2024, with strong growth in key areas such as PBT, PAT, and net sales. However, the company needs to address its high debt-equity ratio to ensure a healthy liquidity position.