Lakhotia Polyesters Reports Strong Half-Year Growth Amid Concerns Over Non-Operating Income

Lakhotia Polyesters (India), a microcap 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 performance, with a revision in its score reflecting these changes.
In the half-yearly results, Lakhotia Poly reported net sales of Rs 48.75 crore, marking a significant year-on-year growth of 144.85%. This figure surpasses the previous twelve-month sales of Rs 25.20 crore, indicating a strong sales trend. Additionally, the profit after tax (PAT) for the half-year reached Rs 2.23 crore, a notable improvement compared to the preceding twelve-month period, which recorded a loss of Rs 0.48 crore.

On a quarterly basis, the operating profit (PBDIT) reached its highest level in five quarters at Rs 0.92 crore, alongside a profit before tax (PBT) of Rs 0.75 crore, also the highest in the same timeframe. However, it is important to note that a significant portion of the profit before tax, approximately 64.45%, is derived from non-operating income, raising concerns about the sustainability of this income source.

Overall, Lakhotia Polyesters has shown positive financial trends, leading to an adjustment in its evaluation.

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