Emmbi Industries' Q2 financials show mixed performance, PAT up 61.72% but revenue down -3.47%

Revenue - Quarterly: At Rs 111.04 cr is lower by -3.47% from preceding quarter.The company's revenue has decreased in the last quarter.

Emmbi Industries, a microcap company in the packaging industry, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, the company has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the overall score from 2 to 3 in the last three months.

The company's Profit After Tax (PAT) for the nine-month period has shown a significant growth of 61.72% year on year, reaching Rs 7.73 crore. The near-term trend for PAT is also positive. Similarly, the Operating Profit (PBDIT) for the quarter has been the highest in the last five quarters, standing at Rs 9.79 crore. The near-term trend for Operating Profit is also positive.

Emmbi Industries has also been successful in reducing its debt-to-equity ratio, which is at its lowest in the last five half-yearly periods. This shows that the company has been able to reduce its borrowing in comparison to its equity capital.

However, there are some areas that need improvement for Emmbi Industries. The Operating Profit to Interest ratio for the quarter is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. Additionally, the company's revenue for the quarter has decreased by -3.47% from the preceding quarter.

Overall, Emmbi Industries has shown a mixed performance in the quarter ending September 2024. While there are some positive trends in terms of profitability and debt management, there are also areas that need improvement. Investors are advised to hold their positions in the stock, as recommended by MarketsMOJO.