Finolex Cables Reports Negative Financial Performance in Q2 FY24-25

Finolex Cables, a midcap company in the cable industry, recently declared its financial results for the quarter ending September 2024. According to the report, the company has seen a negative financial performance in Q2 FY24-25, with a score of -8 compared to 9 in the previous quarter.

Despite this, there are some positive aspects to the company's financials. Finolex Cables has shown a strong operating cash flow of Rs 576.90 crore annually in the last three years, indicating higher revenues from business operations. Additionally, the company has consistently distributed higher dividends to its shareholders, with the highest dividend per share (DPS) of Rs 8.00 in the last five years.

However, there are also some concerning factors in the financial report. The company's profit before tax less other income (PBT) has fallen by -39.81% year on year, and the profit after tax (PAT) has also decreased by -23.5% year on year. The operating profit (PBDIT) is at its lowest in the last five quarters, and the operating profit margin has also decreased to 8.07%. This indicates a decline in the company's efficiency.

Moreover, the non-operating income of Finolex Cables is 34.24% of its PBT, which suggests that the company's income from non-business activities is high and may not be a sustainable business model. The earnings per share (EPS) have also decreased to its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

It is worth noting that the stock call for Finolex Cables by MarketsMOJO is 'Sell'. This is based on the negative financial performance of the company in the recent quarter. Investors should carefully consider these factors before making any investment decisions.