Mohit Paper Mills Reports Mixed Financial Results, Highlighting Profitability and Rising Costs in December 2024

Mohit Paper Mills has recently reported its financial results for the quarter ending December 2024, revealing a mix of trends that highlight both strengths and challenges within the company. The Profit After Tax (PAT) reached Rs 2.58 crore, marking the highest figure in the last five quarters, indicating a positive near-term trend in profitability. Additionally, the Earnings per Share (EPS) also peaked at Rs 1.84 during the same period, reflecting an increase in earnings for shareholders.
However, the financial landscape is not without its difficulties. The interest expense for the half-yearly period rose significantly to Rs 3.82 crore, showcasing a notable increase in borrowing costs. This rise in interest expenses has impacted the company's ability to manage its financial obligations, as evidenced by the Operating Profit to Interest ratio, which fell to its lowest point at 2.20 times in the last five quarters. Furthermore, the Profit Before Tax (PBT) recorded a decline, reaching Rs -0.22 crore, while non-operating income constituted a substantial 107.10% of PBT, raising concerns about the sustainability of the business model.

In light of these developments, Mohit Paper Mills has undergone an adjustment in its evaluation, reflecting the complexities of its current financial standing.

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