Astra Microwave's Q2 FY25 financials show mixed results, with positive sales trend but declining profits

Astra Microwave Products, a midcap company in the defence industry, recently declared its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Astra Microwave has seen a negative performance in the quarter, with a score of -7 compared to 0 in the previous quarter. However, there are some positive aspects to the company’s performance. The net sales for the nine-month period have grown by 26.87% year on year, indicating a positive sales trend in the near term.

On the other hand, there are some areas where Astra Microwave needs to improve. The profit before tax (PBT) for the quarter has fallen by 23.5% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of 24.8% compared to the average PAT of the previous four quarters. The company’s operating cash flow has also been consistently falling in the last three years.

Additionally, the debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, indicating a slowdown in the company’s pace of settling its debtors. The interest cost for the quarter has also increased by 20.52%, signifying increased borrowings. The debt-equity ratio for the half-yearly period is at its highest in the last five periods, indicating that the company is borrowing more to fund its operations.

Moreover, Astra Microwave has a low dividend payout ratio of 15.68% in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends. Overall, while there are some positive aspects to Astra Microwave’s financial performance, there are also areas that require improvement. Investors are advised to hold their stock and monitor the company’s performance closely.