Bihar Sponge Iron's Q2 FY24-25 financial results show decline in sales and profits

Bihar Sponge Iron, a microcap company in the steel/sponge iron/pig iron industry, recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Bihar Sponge has seen a flat performance in the second quarter of FY24-25, with a score of -1 compared to 6 in the previous three months. This decline can be attributed to several factors, including a decrease in net sales and profit after tax.

The company's net sales for the quarter were at Rs 63.76 crore, which is a 20.8% decrease from the average net sales of the previous four quarters. This indicates a negative trend in the company's sales in the near term. Similarly, the profit after tax for the quarter was at Rs 1.46 crore, a 44.1% decrease from the average of the previous four quarters.

Bihar Sponge's operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, at Rs -5.18 crore. This also reflects a negative trend in the company's operating profit in the near term. The operating profit margin for the quarter was also at its lowest in the last five quarters, at -8.12%, indicating a decline in the company's efficiency.

Furthermore, the company's profit before tax (PBT) less other income was at its lowest in the last five quarters, at Rs -6.24 crore. This shows a negative trend in the company's PBT in the near term. Additionally, the non-operating income for the quarter was at 527.40% of the PBT, which suggests that the company's income from non-business activities is high and not sustainable in the long run.

Overall, the financial results for Bihar Sponge Iron in the quarter ending September 2024 have not been positive. With a 'Sell' call from MarketsMOJO, it is important for investors to carefully consider the company's performance before making any investment decisions.