Geojit Financial Services Reports Positive Q2 FY25 Results, But Faces Challenges Ahead

Geojit Financial Services, a smallcap finance and non-banking financial company, has recently declared its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Geojit Financial Services has shown positive performance in the quarter, with a score of 15 compared to 10 in the previous quarter. The company’s net sales for the quarter were at Rs 218.46 crore, the highest in the last five quarters, and have shown a growth of 27.5% over the average net sales of the previous four quarters. This indicates a positive trend in the company’s sales.

The operating profit (PBDIT) for the quarter was also at its highest in the last five quarters, at Rs 94.10 crore. The operating profit margin has also improved, reaching 43.07%, indicating an increase in the company’s efficiency.

Geojit Financial Services’ profit before tax (PBT) has also shown a positive trend, with the highest PBT of Rs 75.43 crore in the last five quarters. The company’s profit after tax (PAT) for the quarter was at Rs 56.03 crore, the highest in the last five quarters, and has shown a growth of 33.1% over the average PAT of the previous four quarters.

However, there are some areas that need improvement for Geojit Financial Services. The company’s operating cash flow has been consistently falling in the last three years, with the lowest at Rs -124.05 crore in the last year. The debt-equity ratio has also been increasing in the last five half-yearly periods, indicating that the company is borrowing more to fund its operations.

In terms of dividend payout, Geojit Financial Services has been distributing a lower proportion of its profits as dividends, with the lowest dividend payout ratio of 24.76% in the last five years.

Overall, Geojit Financial Services has shown positive financial performance in the quarter ending September 2024, with improvements in net sales, operating profit, and profit after tax. However, the company needs to address its falling operating cash flow and increasing debt-equity ratio to maintain its financial stability.