Alankit Reports Strong Financial Performance in Q2 FY25, Net Sales and PAT Show Significant Growth

Alankit, a microcap finance and NBFC company, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance with a score of 12, an improvement from 9 in the last 3 months.

One of the key highlights of the financials is the growth in net sales, which has increased by 48.55% year on year to reach Rs 64.35 crore. This indicates a strong sales trend in the near term. Similarly, the profit after tax (PAT) has also shown a significant growth of 51.4% year on year, reaching Rs 3.15 crore. This positive trend in PAT is expected to continue in the near future.

Another positive aspect of Alankit’s financials is its operating cash flow, which has been the highest in the last three years at Rs 9.60 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

However, there are certain areas that need improvement for Alankit. The non-operating income for the quarter is 62.60% of the profit before tax (PBT), indicating a high reliance on non-business activities. This may not be a sustainable business model in the long run.

Additionally, the company’s dividend payout ratio (DPR) has been the lowest at 0.00% in the last five years. This means that the company is distributing a lower proportion of its profits as dividends, which may not be attractive for investors.

Overall, Alankit has shown a positive financial performance in the quarter ending September 2024. However, there are certain areas that need improvement for the company to sustain its growth in the long run. Investors should carefully consider these factors before making any investment decisions.