Genus Power Infrastructures reports strong financial results, receives 'Buy' call from MarketsMOJO

Genus Power Infrastructures, a midcap company in the electronics-components industry, has recently declared its financial results for the quarter ending June 2024. The company has received a 'Buy' call from MarketsMOJO, indicating a positive outlook for its stock.

According to the financials, Genus Power has shown a very positive performance in the quarter, with a score of 20, an improvement from 16 in the previous quarter. The company's profit before tax (PBT) has grown by 154.7% to Rs 36.60 crore, compared to the average PBT of the previous four quarters at Rs 14.37 crore. This trend is expected to continue in the near term.

Similarly, the company's profit after tax (PAT) has also shown a significant growth of 123.1% to Rs 48.33 crore, compared to the average PAT of the previous four quarters at Rs 21.67 crore. The operating profit to interest ratio has also improved, reaching its highest at 3.07 times in the last five quarters, indicating the company's ability to manage its interest payments.

Genus Power's net sales have also seen a positive trend, growing by 38.1% to Rs 414.16 crore, compared to the average net sales of the previous four quarters at Rs 299.99 crore. The company's operating profit (PBDIT) has reached its highest at Rs 63.16 crore in the last five quarters, and the operating profit margin has also improved to its highest at 15.25%.

The company's cash and cash equivalents have also shown improvement, reaching its highest at Rs 670.45 crore in the last six half-yearly periods. This indicates a positive trend in the company's short-term liquidity. Additionally, the debtors turnover ratio has also improved, reaching its highest at 2.07 times in the last five half-yearly periods, showing the company's ability to settle its debtors faster.

However, there are some areas that need improvement for Genus Power. The interest cost has increased by 11.44% (QoQ) and is at its highest in the last five quarters at Rs 20.56 crore. This signifies increased borrowings by the company. The non-operating income is also high, at 42.48% of the PBT, indicating a reliance on non-business activities for income. The debt-equity ratio has also reached its highest at 0.37 times in the last five half-yearly periods, indicating a higher reliance on borrowing for funding operations.

Overall, Genus Power Infrastructures has shown a very positive financial performance in the quarter ending June 2024. With a 'Buy' call from MarketsMOJO, the company's stock is expected to perform well in the near future. However, the company should focus on reducing its interest cost and improving its debt-equity ratio for sustainable growth.