Krishna Institute of Medical Sciences has released its financial results for the second quarter of fiscal year 2024-25, revealing a mixed performance.

Financial Performance

The company reported consistent growth in operating cash flow and net sales, but concerns have arisen regarding the rising debt-equity ratio and increasing interest costs.

Despite achieving its highest operating cash flow and net sales to date, the company's debt-equity ratio has reached its highest level in the last five half-yearly periods, indicating an increasing reliance on borrowing.

The interest cost for the quarter has also increased, suggesting a rise in borrowings that may strain financial resources.

Profitability

However, the company has shown positive growth in profitability, with the profit before tax and profit after tax reaching record highs.

Challenges in Receivables Management

The company faces challenges in managing its receivables, as the debtors turnover ratio has fallen to its lowest point.

Non-Operating Income

Additionally, the non-operating income for the quarter is derived from non-business activities, raising questions about its sustainability.

Conclusion

Investors are advised to consider both the positive growth in profitability and the concerns regarding debt management and liquidity.

The mixed financial performance highlights the complexities of navigating the healthcare sector, where operational efficiency must be balanced with prudent financial management.