HCG Reports Positive Q1 FY25 Results, But Some Areas Need Improvement

Healthcare Global Enterprises (HCG), a smallcap company in the healthcare services industry, has recently announced its financial results for the quarter ended June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, HCG has shown positive performance in the quarter, with a score of 6 out of 20, which is an improvement from the previous quarter. The company’s Profit After Tax (PAT) has grown by 58.7% year on year, with a near term trend that is very positive. The Net Sales for the quarter were the highest in the last five quarters, showing a positive trend in the near term. The Profit Before Tax less Other Income (PBT) has also shown growth of 25.68% year on year, with a positive trend in the near term. Additionally, the company has been able to settle its Debtors faster, with a Debtors Turnover Ratio of 6.49 times in the last five half yearly periods.

However, there are some areas that need improvement for HCG. The interest cost for the quarter has increased by 25.60% quarter on quarter, which signifies increased borrowings. The company’s Non Operating Income is also high, at 46.39% of the Profit Before Tax, which may not be a sustainable business model. The Debt-Equity Ratio for the last five half yearly periods is at its highest, indicating that the company is borrowing more to fund its operations and its liquidity situation may be stressed. Moreover, the company’s income from non-business activities has increased, but this may not be sustainable in the long run.

Overall, HCG has shown positive financial performance in the quarter ended June 2024, with some areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s future financial results.