Igarashi Motors Reports Strong Sales Growth Amid Rising Debt Concerns in Q4 Results
Igarashi Motors India has reported its financial results for the quarter ending December 2024, showing a year-on-year growth in net sales to Rs 426.87 crore. However, the company faces challenges with a rising debt-equity ratio and a decline in profit after tax, indicating mixed financial performance.
Igarashi Motors India, a small-cap player in the auto ancillary sector, has recently reported its financial results for the quarter ending December 2024. The company has demonstrated a positive trend in net sales, achieving Rs 426.87 crore, which reflects a year-on-year growth of 21.20%. This upward trajectory in sales indicates a favorable near-term sales trend for the company.However, the financial landscape is not without its challenges. The debt-equity ratio has reached its highest point in the last five half-yearly periods at 0.33 times, suggesting an increase in borrowing to support operations. This trend may raise concerns regarding the company's liquidity position. Additionally, the profit after tax (PAT) for the quarter stands at Rs 5.16 crore, which represents a decline of 8.9% compared to the average PAT of the previous four quarters.
Overall, Igarashi Motors has experienced an adjustment in its evaluation, with its score reflecting these mixed financial indicators.
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