Elixir Capital's Q2 FY25 financials show strong growth, but concerns remain for long-term success.

Nov 18 2024 09:54 AM IST
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Elixir Capital, a microcap finance company, has reported a strong financial performance in the quarter ending September 2024. The company's PBT, Net Sales, and PAT have all shown significant growth compared to the previous four quarters. However, the company's declining Operating Cash Flow may pose a challenge for its long-term growth.

This is not a good sign for long-term growth.

Elixir Capital, a microcap finance company, has recently announced its financial results for the quarter ending September 2024. The company has shown outstanding performance in this quarter, with a score of 30, which is an improvement from the previous score of 28 in the last 3 months.


According to the financials, the company’s Profit Before Tax less Other Income (PBT) for the quarter has grown by 87.3% to Rs 14.91 crore, compared to the average PBT of the previous four quarters which was Rs 7.96 crore. This shows a very positive trend in the near term for the company’s PBT.


Similarly, the Net Sales for the quarter has also shown a significant growth of 74.6% to Rs 18.56 crore, compared to the average Net Sales of the previous four quarters which was Rs 10.63 crore. This indicates a very positive trend in the near term for the company’s sales.


The company’s Profit After Tax (PAT) for the quarter has also seen a growth of 73.6% to Rs 8.36 crore, compared to the average PAT of the previous four quarters which was Rs 4.81 crore. This shows a very positive trend in the near term for the company’s PAT.


In fact, the company has achieved its highest Net Sales and Operating Profit (PBDIT) in the last five quarters, with figures of Rs 18.56 crore and Rs 15.56 crore respectively. This indicates a positive trend in the near term for the company’s profitability.


However, the company’s Operating Cash Flow for the year has been the lowest in the last three years at Rs -0.18 crore. This shows a decline in the company’s cash revenues from business operations, which may not be a good sign for its long-term growth.


Overall, Elixir Capital has shown a strong financial performance in the quarter ending September 2024, with positive trends in its PBT, Net Sales, PAT, and EPS. However, the company needs to address its declining Operating Cash Flow for sustained growth in the future. Based on these financials, MarketsMOJO has given a ‘Hold’ call for Elixir Capital’s stock.


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