Sanghi Industries Reports Mixed Q4 Results Amid Rising Debt and Sales Growth

Sanghi Industries, a small-cap player in the cement industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a mixed performance, with notable changes in its evaluation metrics.
On the positive side, Sanghi Industries achieved net sales of Rs 258.96 crore, reflecting a growth of 22.1% compared to the average net sales of the previous four quarters, which stood at Rs 212.12 crore. This upward trend in sales suggests a favorable near-term trajectory. Additionally, the company's debtors turnover ratio reached a high of 39.11 times over the last five half-yearly periods, indicating improved efficiency in settling receivables.

Conversely, the financial results also highlight challenges for Sanghi Industries. The profit after tax (PAT) for the quarter was reported at Rs -96.96 crore, marking a decline of 24.6% from the average PAT of the previous four quarters, which was Rs -77.82 crore. Furthermore, the interest expense has risen to Rs 112.26 crore, an increase of 24.32% over the previous half-yearly period, reflecting a growing reliance on borrowings. The debt-equity ratio has also reached its highest point at 3.25 times, suggesting potential liquidity concerns as the company increases its debt levels.

Overall, Sanghi Industries has experienced an adjustment in its evaluation, reflecting the complexities of its current financial landscape.

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