Gorani Industries Reports Mixed Financial Results for Q2 2024, Sales Trend Positive

Gorani Industries, a microcap company in the domestic appliances industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Gorani Industries has seen a flat performance in the second quarter of the fiscal year 2024-25, with a score of -5 compared to 8 in the previous quarter. However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters at Rs 12.32 crore, and the company's sales trend is currently positive.

In terms of profitability, Gorani Industries has shown improvement in its Profit After Tax (PAT) for the nine-month period, with a higher amount of Rs 0.69 crore compared to the previous 12-month period. This indicates that the company has already surpassed its sales from the previous year.

However, there are some areas of concern for Gorani Industries. The Profit Before Tax less Other Income (PBT) for the quarter has fallen to Rs -0.70 crore, a decrease of 267.7% compared to the average PBT of the previous four quarters. The company's operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, and the operating profit margin has deteriorated to -2.76%.

The company's profitability has also declined, with the lowest earnings per share (EPS) of Rs -0.75 in the last five quarters. Additionally, the company's short-term liquidity is deteriorating, with the lowest cash and cash equivalents of Rs 0.04 crore in the last six half-yearly periods. The debtors turnover ratio has also slowed down, indicating a delay in the company's debt settlements.

Overall, Gorani Industries has shown mixed financial results for the quarter ending September 2024. While there are some positive aspects, there are also areas of concern that the company needs to address in order to improve its performance. Investors should carefully consider these factors before making any investment decisions.