Gujarat Industries Power Co Reports Negative Financial Results for Q2 2024

Nov 12 2024 10:31 PM IST
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Gujarat Industries Power Co, a smallcap company in the power generation and distribution industry, reported a negative performance in the second quarter of FY24-25 with a score of -7. The company's operating cash flow has shown growth, but profit before and after tax, as well as net sales, have decreased. Non-operating income is also high, indicating an unsustainable business model. Investors should carefully consider these factors before making any investment decisions.

Gujarat Industries Power Co, a smallcap company in the power generation and distribution industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Guj Inds. Power has seen a negative performance in the second quarter of FY24-25, with a score of -7 compared to 4 in the previous quarter. However, there are some positive aspects to the company's financials. The operating cash flow for the year is the highest at Rs 561.51 crore and has shown growth in the last three years, indicating that the company has generated higher cash revenues from its business operations.

On the other hand, there are some concerning factors in the financial report. The profit before tax (PBT) has fallen by -34.7% compared to the average of the previous four quarters, and the profit after tax (PAT) has also fallen by -33.5%. The net sales for the quarter have also decreased by -16.7% compared to the average of the previous four quarters, and it is the lowest in the last five quarters. This indicates a negative trend in the company's near-term financial performance.

Another concerning aspect is the non-operating income, which is 36.50% of the PBT. This means that the company's income from non-business activities is high, which is not a sustainable business model.

Overall, the financial results for the quarter ending September 2024 for Gujarat Industries Power Co show a negative trend in its performance. Investors should carefully consider these factors before making any investment decisions.
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