Enkei Wheels India Reports Negative Financial Performance in Q2 FY25

Enkei Wheels India, a smallcap auto ancillary company, recently announced its financial results for the quarter ending September 2024. The company has seen a negative financial performance in Q2 FY24-25, with a score of -13 compared to 7 in the previous quarter.

Despite this, there are some positive aspects to Enkei Wheels’ financials. The company’s net sales for the quarter were the highest in the last five quarters at Rs 238.62 crore, indicating a positive sales trend in the near term. Additionally, their cash and cash equivalents for the half-yearly period were also the highest in the last six periods, showing an improvement in short-term liquidity.

However, there are also some areas of concern in the financials. The company’s profit before tax less other income (PBT) for the quarter was at Rs -6.99 crore, a significant decrease of -289.7% compared to the average PBT of the previous four quarters. This indicates a very negative trend in the near term. Similarly, the profit after tax (PAT) for the quarter was at Rs -4.56 crore, a decrease of -200.0% compared to the average PAT of the previous four quarters.

The company’s interest cost has also increased by 27.24% quarter on quarter, indicating increased borrowings. This is further reflected in the company’s lowest operating profit to interest ratio in the last five quarters, showing a deteriorating ability to manage interest payments. The operating profit for the quarter was also the lowest in the last five quarters, and the operating profit margin was at its lowest at 4.08%.

Overall, Enkei Wheels India’s financial performance for the quarter ending September 2024 has been negative, with declining profitability and a negative trend in key financial indicators. Investors should take note of these factors before making any investment decisions.