Dynamic Cables' Q2 FY25 Financial Results Show Positive Growth, But Concerns Remain

Dynamic Cables, a smallcap company in the cable industry, has recently declared its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 19 out of 100, compared to 0 in the previous quarter.

One of the key highlights of the financial results is the significant growth in Profit Before Tax (PBT) less Other Income, which has increased by 155.64% year on year. This shows a very positive trend in the near term for PBT. Similarly, the Profit After Tax (PAT) has also shown a growth of 172.1% year on year, indicating a positive trend in the near term.

The company’s Net Sales have also seen a significant growth of 52.53% year on year, which is a very positive trend in the near term. Additionally, the Operating Profit to Interest ratio has been the highest in the last five quarters, at 5.24 times, showing an improvement in the company’s ability to manage interest payments.

However, one area of concern for Dynamic Cables is its Operating Cash Flow, which has been falling each year in the last three years and is currently at its lowest at Rs 1.26 crore. This indicates a decline in the company’s cash revenues from business operations.

Overall, the financial results for the quarter ending September 2024 show a positive trend for Dynamic Cables, with improvements in key areas such as PBT, PAT, and Net Sales. However, the company needs to address its declining Operating Cash Flow to ensure sustainable growth in the future. Based on these results, MarketsMOJO has given a ‘Hold’ call for Dynamic Cables’ stock.