Asian Hotels (E) Reports Negative Financial Results for Q2 2024-2025

Nov 12 2024 04:49 PM IST
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Asian Hotels (E) has reported negative financial results for the second quarter of fiscal year 2024-2025, with a decline in Profit Before Tax and Profit After Tax. Rising interest costs and a significant drop in Net Sales are major concerns. Investors are advised to hold their stocks and monitor the company's performance.

Asian Hotels (E) has recently declared their financial results for the quarter ending September 2024. The company, which operates in the hotel, resort, and restaurant industry, has been classified as a microcap company. According to MarketsMOJO, the stock call for Asian Hotels (E) is 'Hold'.

The financial performance of the company for the second quarter of the fiscal year 2024-2025 has been negative, with a score of -14 compared to -12 in the previous quarter. This decline can be attributed to various factors, as seen in the September 2024 financials.

One of the major concerns for Asian Hotels (E) is the rising interest cost, which has grown by 300.39% in the last nine months. This indicates an increase in borrowings, which can have a negative impact on the company's financial health.

The company's Profit Before Tax (PBT) has also seen a significant decline of -296.7% in the last quarter, compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term.

Similarly, the Profit After Tax (PAT) has fallen by -46.0% in the last quarter, compared to the average PAT of the previous four quarters. This is a cause for concern as it indicates a negative trend in the company's profitability.

The Net Sales for the quarter have also seen a decline of -15.5% compared to the average Net Sales of the previous four quarters. This is a significant drop and reflects a negative trend in the company's sales performance.

Moreover, the Operating Cash Flow for the company has been at its lowest in the last three years, at Rs -385.18 Cr. This indicates a decline in the company's cash revenues from business operations.

Lastly, the Non-Operating Income for the quarter is 248.04% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

In conclusion, the recent financial results of Asian Hotels (E) have been negative, with various factors contributing to this decline. Investors are advised to hold their stocks and closely monitor the company's performance in the coming quarters.
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