Sigachi Industries Reports Strong Q3 FY24-25 Growth Amid Rising Interest Costs and Operational Challenges

Sigachi Industries, a small-cap player in the pharmaceuticals and drugs sector, has recently reported its financial results for the third quarter of FY24-25. The company announced its performance on January 18, 2025, revealing notable growth in several key metrics. Profit Before Tax (PBT) reached Rs 24.69 crore, reflecting a substantial increase compared to the average PBT of the previous four quarters. Additionally, Profit After Tax (PAT) for the half-year was reported at Rs 43.13 crore, showing a year-on-year growth.
Net sales achieved a record high of Rs 139.42 crore, demonstrating growth over the previous four quarters. Operating profit was reported at Rs 33.18 crore, with an operating profit margin of 23.80%, indicating enhanced operational efficiency.

Despite these positive developments, the company is encountering challenges, particularly with a significant rise in interest costs, which increased quarter-on-quarter. Furthermore, both the inventory turnover ratio and debtors turnover ratio have shown a decline, suggesting potential issues with sales and collection processes. The debt-equity ratio has also risen, indicating a shift in the company's borrowing strategy to support its operations.

In light of these results, there have been evaluation changes regarding the stock's performance metrics.

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