Amarjothi Spinning Mills Shows Positive Growth in Q2 2024 Financial Results

Amarjothi Spinning Mills, a microcap textile company, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, the company has shown positive performance in the second quarter of the fiscal year 2024-2025. The overall score has improved from 13 to 15 in the last three months.

One of the major factors contributing to this improvement is the increase in net sales, which has grown by 42.88% year on year, reaching Rs 53.48 crore. This indicates a very positive sales trend in the near term.

The company has also shown growth in its profit after tax (PAT), which has increased by 34.02% year on year, reaching Rs 6.54 crore. This shows a positive trend in the near term for the company's profitability.

Amarjothi Spinning Mills has also been able to improve its short-term liquidity, with cash and cash equivalents reaching the highest in the last six half-yearly periods at Rs 37.27 crore. Additionally, the company has been able to settle its debtors faster, with the debtors turnover ratio reaching the highest in the last five half-yearly periods at 8.18 times.

However, there are some areas that need improvement for the company. The interest cost has increased by 21.46% over the preceding nine months period, indicating increased borrowings. The operating cash flow has also been falling, with the lowest amount of Rs 8.51 crore in the last three years.

Overall, Amarjothi Spinning Mills has shown positive financial performance in the recent quarter, with some areas that need attention for further growth. Investors are advised to hold their stocks for now, as per the recommendation by MarketsMOJO.