Advait Infratech's Q2 FY25 Financial Results Show Significant Decline in Sales and Profitability
Advait Infratech, a smallcap company in the power generation and distribution industry, recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Sell’.
According to the financial report, Advait Infratech has seen a negative performance in the quarter, with a score of -7 compared to 19 in the previous quarter. This is a significant decline in just three months.
The company’s net sales for the quarter were at Rs 46.19 crore, which is a decrease of 23.4% from the average net sales of the previous four quarters, which was Rs 60.30 crore. This indicates a very negative trend in near-term sales.
Similarly, the profit before tax less other income (PBT) for the quarter was at Rs 4.55 crore, a decrease of 41.9% from the average PBT of the previous four quarters, which was Rs 7.84 crore. The profit after tax (PAT) for the quarter was also down by 32.9% from the average PAT of the previous four quarters, which was Rs 6.47 crore.
One of the major concerns for Advait Infratech is the rising interest cost, which has grown by 283,999,900.00% quarter on quarter. This signifies increased borrowings by the company. The operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments.
The company’s net sales for the quarter were also at its lowest in the last five quarters, and the interest cost was at its highest, increasing by 283,999,900.00% quarter on quarter. The PBT for the quarter was also at its lowest in the last five quarters, showing a negative trend.
The earnings per share (EPS) for the quarter were also at its lowest in the last five quarters, at Rs 4.13. This indicates a decline in profitability, and the company has created lower earnings for its shareholders.
Overall, the financial results for the quarter ending September 2024 are not favorable for Advait Infratech. The company needs to address its declining sales and profitability, as well as manage its increasing interest costs to improve its financial performance.
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