Empower India Reports Positive Q1 Results, But Some Areas Need Improvement

Empower India, a microcap trading company, has recently announced its financial results for the quarter ending March 2024. The stock call by MarketsMOJO for Empower India is 'Hold'.

According to the financials, Empower India has shown positive performance in the quarter, with a score of 15 compared to 33 in the previous 3 months. The company's net sales for the quarter have seen a significant growth of 1222.2% at Rs 87.00 crore, compared to the average net sales of the previous four quarters at Rs 6.58 crore. This indicates a very positive sales trend in the near term.

Moreover, the company's half-yearly Profit After Tax (PAT) has also shown an increase at Rs 5.86 crore, compared to the preceding 12-month period ended March 2024 at Rs 1.06 crore. In just half a year, Empower India has already surpassed its PAT for the previous twelve months, indicating a strong financial performance.

However, there are some areas that need improvement for Empower India. The company's Operating Profit (PBDIT) for the quarter is at its lowest in the last five quarters at Rs -0.63 crore, indicating a negative trend in the near term. Similarly, the Profit Before Tax less Other Income (PBT) for the quarter is also at its lowest in the last five quarters at Rs -0.63 crore, showing a negative trend in the near term. Additionally, the company's Non-Operating Income for the quarter is at 124.23% of the PBT, which is a cause for concern as it indicates a high income from non-business activities, which may not be sustainable in the long run. The Non-Operating Income for the quarter is also at its highest in the last five quarters at Rs 3.23 crore, which may not be a sustainable business model.

Overall, Empower India has shown positive financial performance in the quarter ending March 2024, with a strong growth in net sales and PAT. However, there are some areas that need improvement, and investors are advised to hold their stock for now, according to MarketsMOJO.