Ahluwalia Contracts (India) Reports Negative Performance in Q1 FY25, Investors Advised to Hold

Ahluwalia Contracts (India), a midcap company in the capital goods industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is ‘Hold’.

According to the financials, Ahluwalia Contracts has seen a negative performance in the quarter, with a score of -11 compared to -2 in the previous quarter. However, there are some positive aspects to the company’s performance.

The net sales for the quarter were at Rs 919.35 crore, showing a growth of 20.40% year on year. This indicates a positive trend in the company’s sales in the near term.

On the other hand, there are some areas where Ahluwalia Contracts needs to improve based on the financials. The profit before tax less other income (PBT) for the quarter was at Rs 30.65 crore, showing a decline of -48.93% year on year. The profit after tax (PAT) also saw a decline of -38.5% year on year. The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The interest cost for the nine-month period has also increased, indicating a rise in borrowings. The operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, and the operating profit margin was also at its lowest at 6.58%. The company’s efficiency has deteriorated in this aspect.

The PBT for the quarter was also at its lowest in the last five quarters, showing a negative trend in the near term. The earnings per share (EPS) for the quarter were also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Overall, the financial performance of Ahluwalia Contracts (India) for the quarter ending June 2024 has been negative, with some areas of improvement needed. Investors are advised to hold their stocks for now, as recommended by MarketsMOJO.