Delton Cables Reports Positive Q2 Results, Strong Net Sales and Profitability

Delton Cables, a microcap company in the cable industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Delton Cables has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 26 to 14 in the last three months.

One of the key factors contributing to this positive performance is the increase in net sales. In the last five quarters, Delton Cables has recorded its highest net sales of Rs 174.92 crore, with a growth rate of 47.4% compared to the previous four quarters. This trend is expected to continue in the near future.

The company has also shown a strong operating profit (PBDIT) of Rs 10.06 crore in the last five quarters, indicating a positive trend in the near term. Additionally, Delton Cables has reported its highest earnings per share (EPS) of Rs 9.83 in the last five quarters, showcasing its increasing profitability and ability to generate higher earnings for shareholders.

On the dividend front, Delton Cables has consistently distributed higher dividends to its shareholders, with the highest dividend per share (DPS) of Rs 1.50 in the last five years. The company's dividend payout ratio (DPR) has also been at its highest of 8.84% in the last five years, indicating its commitment to sharing profits with shareholders.

However, there are some areas of concern for Delton Cables. The company's profit after tax (PAT) has fallen by 33.3% compared to the average of the previous four quarters. Additionally, the company's operating cash flow has been at its lowest in the last three years, indicating a decline in cash revenues from business operations. The interest cost has also increased by 23.65% in the last five quarters, which could be a result of increased borrowings.

Overall, Delton Cables has shown positive financial performance in the recent quarter, with strong net sales and profitability. However, investors should keep an eye on the declining PAT and operating cash flow, as well as the increasing interest cost.