Axtel Industries' Q2 FY25 Financial Results Show Mixed Performance, Investors Urged to Evaluate Carefully

Axtel Industries, a microcap engineering company, recently announced its financial results for the quarter ending September 2024. The results, declared on October 25, 2024, have received a “Strong Sell” call from MarketsMOJO.

The company’s financial performance for the quarter has been negative, with no improvement seen in the last three months. However, there are some positive aspects to note from the Sep 2024 financials. Axtel Industries has shown a consistent growth in its operating cash flow, with the highest amount of Rs 38.68 crore generated annually in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the company’s dividend per share (DPS), which has been consistently increasing over the last five years and reached its highest at Rs 6.00. This shows that Axtel Industries is distributing higher dividends from its profits.

On the other hand, there are some areas of concern based on the Sep 2024 financials. The profit before tax less other income (PBT) for the quarter has fallen by 50.03% year on year (YoY) to Rs 7.83 crore. This indicates a very negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by 50.5% YoY to Rs 5.90 crore, and the net sales have fallen by 19.62% YoY to Rs 55.84 crore. These trends suggest a negative outlook for the company in the near term.

Overall, Axtel Industries has shown a mixed performance in its recent financial results, with some positive and negative aspects to consider. Investors should carefully evaluate the company’s financials before making any investment decisions.