AKI India Limited — Results, 22-05-2025: Integrated Filing- Financial
AKI India Limited has announced a board meeting on 30th May 2025 to consider the financial results for the quarter and half-year.
1) **Revenue Performance:**
Consolidated total income rose sharply to ₹27.24 Cr from ₹21.07 Cr a year ago, led solely by growth in the leather and leather goods segment.
2) **Profitability and EPS:**
Net profit increased to ₹1.68 Cr (up from ₹1.37 Cr), with EPS at ₹0.19 versus ₹0.16 previously. Profit before tax jumped 42%, reflecting stronger operational leverage despite cost pressures. Margins remained steady through volume growth and tight expense control.
3) **Operational Costs:**
Material consumption was flat YoY at ₹44.12 Cr. Purchase of stock-in-trade increased notably due to higher trading activity. Employee costs held steady at ₹2.51 Cr, while other expenses rose moderately but were balanced by improved inventory management reducing working capital blockages.
4) **Key Metrics:**
EBITDA before exceptional items improved significantly to ₹2.67 Cr from ₹1.88 Cr, signaling healthier core profitability. The consolidated balance sheet shows increased inventory and higher trade receivables aligned with sales growth and a broader customer base.
5) **Balance Sheet / Cash Flow Health:**
Borrowings edged up slightly to ₹19.33 Cr, indicating manageable leverage to support capex and working capital needs. Cash and equivalents improved to ₹2.78 Cr, aided by financing activities and capital infusion. Capital work-in-progress rose, reflecting ongoing asset expansion.
6) **Management Commentary / Strategic Outlook:**
No specific future guidance provided but steady capex and profitability gains suggest focus on capacity expansion and working capital efficiency.
**Final Takeaway:**
AKI India displays encouraging momentum with robust revenue and profit gains in its core leather goods business. Stable costs and moderate debt levels offer retail investors a cautiously optimistic outlook on scaling and operational improvements.
