IndoStar Capital Finance witnessed a dip in its stock price by nearly 3% on the BSE following the release of its Q3 FY24-25 financial results, which revealed a mixed performance. The company reported robust net sales of ₹718.22 crore for the half-year period, reflecting an impressive year-on-year growth of 52.04%. However, profitability metrics painted a concerning picture.
Key Financial Highlights:
- Profit Before Tax (PBT): Declined sharply to ₹-5.16 crore, marking a 174.9% decrease compared to the four-quarter average PBT of ₹6.89 crore.
- Profit After Tax (PAT): Dropped to ₹11.47 crore, down 38.1% from the previous four-quarter average of ₹18.55 crore.
- Sales Growth: The strong sales growth underscores increased demand for IndoStar’s financial services.
Despite strong sales, the significant decline in profitability has raised concerns about the company’s financial stability. Analysts have responded cautiously, with MarketsMOJO rating the stock as a ‘Sell,’ reflecting bearish market sentiment.
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