Hindustan Media Ventures Shows Positive Financial Performance in Q2 FY25

Hindustan Media Ventures, a microcap company in the printing and publishing industry, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance with a score of 16, a significant improvement from -11 in the previous quarter.

One of the key highlights of the financials is the growth in Profit After Tax (PAT) which has increased by 1249.9% to Rs 13.87 crore compared to the average PAT of the previous four quarters at Rs 1.03 crore. This indicates a very positive trend in the near term for the company. Similarly, the Operating Profit (PBDIT) has also shown a positive trend, with the highest value of Rs -14.48 crore in the last five quarters.

The company’s Profit Before Tax less Other Income (PBT) has also seen a significant improvement, with the highest value of Rs -21.34 crore in the last five quarters. This indicates a positive trend in the near term for the company. The Earnings per Share (EPS) has also increased to Rs 1.88, showcasing the company’s ability to generate higher earnings for its shareholders.

Hindustan Media Ventures has also been able to reduce its Debt-Equity Ratio to 0.05 times in the last five half yearly periods, indicating a decrease in borrowing compared to equity capital. Additionally, the company has also shown a positive trend in its Debtors Turnover Ratio, with the highest value of 6.20 times in the last five half yearly periods.

However, there are some areas that need improvement for Hindustan Media Ventures. The Non Operating Income for the quarter is 243.99% of the Profit Before Tax (PBT), indicating a high income from non-business activities. This may not be a sustainable business model for the company. The Non Operating Income has also increased to the highest value of Rs 36.16 crore in the last five quarters, which may not be sustainable in the long run.

In conclusion, Hindustan Media Ventures has shown a positive financial performance in the quarter ending September 2024. However, the company needs to focus on reducing its reliance on non-business activities and continue to improve its profitability to sustain its growth in the long term. Based on the financials, MarketsMOJO has given a ‘Strong Sell’ call for the stock.