Hindustan Aeronautics Reports Positive Financial Results for Q2 FY25, Debtors Turnover Ratio at 5-Year High

Hindustan Aeronautics, a leading defence company in India, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in this quarter, with a score of 11 out of 10, which is an improvement from the previous quarter.

One of the key highlights of the financial results is the growth in Profit Before Tax (PBT) and Profit After Tax (PAT). PBT has grown by 24.73% year on year, while PAT has grown by 21.8% year on year. This shows a positive trend in the company’s profitability in the near term.

Another positive aspect of the financial results is the Debtors Turnover Ratio, which is at its highest in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster, which is a good sign for its financial health.

However, one area of concern for Hindustan Aeronautics is its Operating Cash Flow, which has been falling each year in the last three years. In the latest financial year, it has reached its lowest at Rs 8,222.82 crore. This indicates that the company’s cash revenues from business operations are declining.

Despite this, MarketsMOJO has given a ‘Buy’ call for Hindustan Aeronautics’ stock, based on its positive financial performance in the quarter. With its strong position in the defence industry and a positive outlook for the near term, Hindustan Aeronautics is a company to watch out for in the largecap segment.