Century Extrusions reports positive growth in PAT, but concerns arise over interest payments

Century Extrusions, a microcap company in the aluminium industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Century Extrusions has seen a flat performance in the last quarter, with a score of -1 compared to 5 in the previous quarter. However, there are some positive aspects to the company's performance. The Profit After Tax (PAT) for the nine-month period has grown by 26.03% year on year, standing at Rs 5.27 crore. This indicates a positive trend in the near term.

On the other hand, there are some areas of concern for Century Extrusions. The Operating Profit to Interest ratio for the quarter is at its lowest in the last five quarters, standing at 2.22 times. This suggests that the company's ability to manage interest payments is deteriorating. Additionally, the Profit Before Tax less Other Income (PBT) for the quarter is also at its lowest in the last five quarters, standing at Rs 1.92 crore. The near term trend for PBT is negative.

Despite these challenges, Century Extrusions remains a strong player in the aluminium industry. Investors are advised to hold onto their stocks for now and keep an eye on the company's performance in the coming quarters.