Dhampur Bio Organics Reports Declining Profitability Amid High Debtors Turnover Ratio

Dhampur Bio Organics, a microcap company in the sugar industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a challenging financial landscape for the company, with notable shifts in its evaluation metrics.
The company's Debtors Turnover Ratio has reached a high of 35.67 times over the last five half-yearly periods, reflecting an efficient collection process and quicker settlement of debts. However, the financial performance has been overshadowed by significant declines in key profitability metrics. The Profit Before Tax (PBT) for the quarter stands at Rs -8.81 crore, which represents a substantial deviation from the average PBT of the previous four quarters. Similarly, the Profit After Tax (PAT) has also shown a marked decline, recorded at Rs -5.10 crore, contrasting sharply with the average PAT from earlier periods.

Additionally, the interest expenses have increased, amounting to Rs 46.95 crore, indicating a rise in borrowing costs. This combination of factors has led to an adjustment in the evaluation of Dhampur Bio Organics, reflecting the current financial challenges faced by the company.

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