Gravita India's Q2 FY25 financials show mixed results, with positive sales and profitability but negative trends in PBT and operating profit

Gravita India, a midcap company in the non-ferrous metal industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is ‘Hold’.

According to the financials, Gravita India has seen a flat performance in the quarter, with a score of -4 compared to 5 in the previous quarter. However, there are some positive aspects to the company’s performance. The net sales for the quarter were the highest in the last five quarters at Rs 927.42 crore, indicating a positive trend in sales. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 72.00 crore, showing a positive trend in profitability. The earnings per share (EPS) for the quarter were also the highest in the last five quarters at Rs 10.43, indicating that the company has been able to create higher earnings for its shareholders.

On the other hand, there are some areas where Gravita India’s performance has not been as strong. The profit before tax less other income (PBT) for the quarter has fallen by -21.7% compared to the average PBT of the previous four quarters. This shows a very negative trend in PBT. The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The operating profit (PBDIT) for the quarter was also the lowest in the last five quarters, indicating a negative trend in operating profit. The operating profit margin for the quarter was also the lowest in the last five quarters, showing a decline in the company’s efficiency. The non-operating income for the quarter was 47.64% of the PBT, which is a high percentage and may not be sustainable for the company’s business model.

Overall, Gravita India’s financial performance for the quarter ending September 2024 has been mixed. While there are some positive aspects, there are also areas where the company needs to improve. Investors are advised to hold their position in the stock and keep a close eye on the company’s future performance.