BIGBLOC Construction's Financial Performance Declines in Q2 FY25, According to MarketsMOJO
BIGBLOC Construction, a smallcap company in the construction and real estate industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for BIGBLOC Construction is ‘Strong Sell’.
The company’s financial performance for the quarter has been very negative, with a score of -34 compared to -25 in the previous quarter. This decline can be attributed to various factors, as seen in the September 2024 financials.
The company’s Profit Before Tax (PBT) less Other Income has fallen by 91.63% year on year, with a near-term trend that is very negative. Similarly, the Profit After Tax (PAT) has also fallen by 71.8% year on year, with a negative near-term trend. The Net Sales have also seen a decline of 12.29% year on year, with a very negative near-term trend.
The company’s ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. The Inventory Turnover Ratio has also seen a decline in the last five half-yearly periods, indicating a slowdown in the company’s pace of selling inventory.
Moreover, the company’s Operating Cash Flow has been at its lowest in the last three years, and the interest cost has increased by 23.02% quarter on quarter. The Operating Profit (PBDIT) has also been at its lowest in the last five quarters, with a negative near-term trend. The Operating Profit Margin has also seen a decline, indicating a deterioration in the company’s efficiency.
The company’s Non-Operating Income is 55.32% of its Profit Before Tax, which suggests that the company’s income from non-business activities is high, which may not be a sustainable business model. The Earnings per Share (EPS) have also seen a decline, with the company creating lower earnings for its shareholders. The Debtors Turnover Ratio has also seen a decline, indicating a slowdown in the company’s pace of settling its debtors.
In conclusion, BIGBLOC Construction’s financial performance for the quarter ending September 2024 has been very negative, with various factors contributing to this decline. Investors should take note of these financials and make informed decisions regarding their investments in the company.
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