RattanIndia Power Reports Mixed Q3 FY24-25 Results Amid Turnaround Signs and Challenges

RattanIndia Power has released its financial results for the third quarter of FY24-25, showcasing a mixed performance. The company's Profit After Tax (PAT) reached Rs 4.33 crore, demonstrating a notable growth compared to the average PAT of Rs -116.16 crore over the previous four quarters. This shift in PAT suggests a potential turnaround for the company.
On the other hand, the results also reveal several challenges. Net sales for the quarter were reported at Rs 733.32 crore, which reflects a decline from the average net sales of Rs 833.65 crore in the preceding four quarters. Additionally, the inventory turnover ratio has fallen to its lowest level at 13.68 times, indicating a slowdown in the pace of selling inventory.

Operating profit (PBDIT) was recorded at Rs 90.30 crore, marking the lowest figure in the last five quarters, while the operating profit margin decreased to 12.31%. Moreover, non-operating income represented a significant portion of Profit Before Tax (PBT), with a remarkable 2,099.77% contribution, reaching its highest quarterly figure at Rs 90.92 crore. This heavy reliance on non-business income raises questions about the sustainability of the company's financial model.

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