Shares of HBL Engineering Ltd fell over 8% to ₹485.20 on Tuesday following the company’s release of its Q3 FY25 financial results, which revealed a mixed performance with improving operational efficiency but declining profitability.
The company reported a significant improvement in its Debtors Turnover Ratio, which stood at 5.90 times—the highest in the past five half-year periods—indicating enhanced receivables management. However, this positive outcome was overshadowed by declines in several key financial metrics.
Key Financial Highlights:
- Profit Before Tax (PBT) less Other Income: ₹77.72 crore, below the previous four-quarter average.
- Profit After Tax (PAT): ₹64.64 crore, reflecting a considerable drop compared to past quarters.
- Net Sales: ₹450.56 crore, marking the lowest point in the last five quarters.
- Operating Profit (PBDIT) and Earnings Per Share (EPS): Both metrics hit their lowest levels in five quarters.
The company’s declining sales and profitability metrics suggest ongoing challenges, despite strong efforts in improving operational efficiency. Investors reacted negatively, as the stock experienced a sharp sell-off during the session.
Outlook: Analysts remain cautious in the near term due to sustained pressure on profitability but acknowledge the potential for improvement if the company continues its focus on efficiency and debt management.
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